Will partner with The One’s lenders to complete 85-storey building located in the heart of the city’s downtown
The One, Toronto’s ambitious luxury condominium project at Yonge and Bloor, has taken another turn as receiver Alvarez & Marsal selected Tridel Group to take over as development manager, construction manager and general contractor. The decision, revealed in court filings on Wednesday, comes after a months-long effort to secure a buyer or construction partner failed to yield results.
Advertisement 2
Article content
Article content
Article content
The project, slated to be an 85-storey mixed-use building, faced significant financial challenges, prompting Alvarez & Marsal to initiate a sale and investment solicitation process in mid-2023. When attempts to find a buyer with a minimum bid of $1.2 billion failed, the receiver ultimately deemed Tridel’s proposal to be the “superior” option. The proposal involves Tridel partnering with The One’s lenders to oversee the tower’s construction.
Court documents outlined the competitive nature of the bidding process, noting that “on or about July 30, 2024, being the phase one bid deadline, the receiver and the broker received letters of intent (LOIs) from 11 participating bidders. Of these, ten participating bidders delivered a development proposal, and one delivered a development proposal and two forms of transaction proposals.”
In a statement, Tridel expressed excitement about working with stakeholders to revitalize One Bloor West, highlighting its extensive experience in high-rise construction and projects such as The Well in Toronto. “We are committed to delivering a landmark building that meets the highest standards of quality and innovation,” a spokesperson said.
Top Stories
Article content
Advertisement 3
Article content
Court documents further detailed Tridel’s qualifications, stating that “Tridel’s recent applicable project experience at Bayside Toronto Waterfront Community, and Ten York, demonstrate its ability to successfully complete development projects comparable to the size, nature and complexity of the project.”
Pending court approval and finalized agreements, Tridel’s engagement is expected to begin in early 2025.
The development’s financial challenges have led Alvarez & Marsal to file an application under the Companies’ Creditors Arrangement Act (CCAA), transitioning the receivership process into one designed to restructure debt and facilitate the project’s continuation. According to Canada.ca, CCAA is typically reserved for companies with more than $5 million in debt, and offers flexibility for reorganizing financial obligations and modifying contracts.
The project’s previous construction manager, Skygrid, was appointed in March to replace Mizrahi Developments, the original developer. Since then, steady progress has been made on the tower, with an additional 34 floors poured through level 76 by late November, according to Alvarez & Marsal.
Advertisement 4
Article content
The One has long been positioned as a signature development, promising luxury amenities and architectural distinction. However, its path to completion has been fraught with delays and financial turbulence. Despite these hurdles, senior secured lenders remain committed to funding construction through to completion, provided the court grants the necessary CCAA relief and approves Tridel’s role in the project.
Recommended from Editorial
“The receiver, in consultation with the broker and the senior secured lenders, is working with Tridel to finalize the definitive documentation contemplated in the term sheet, with a view to seeking court approval of the transaction and related relief in the near term,” court documents said.
• Email: shcampbell@postmedia.com
Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.
Article content
