Fortress Real Developments speaks out

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The developer currently embroiled in a lawsuit with investors has released a statement on the Collier Centre.

The Mady Collier Centre in Barrie is now 80% complete and occupancy is expected for January 2017, according to a release from Fortress Real Developments.

"The substantial progress in the Collier Centre project is even more significant when you consider where the project was just over a year ago when Fortress stepped in to rescue it during CCAA proceedings,” Jawad Rathore, President and CEO of Fortress, said. “Since then, as has been widely acknowledged in the press, Fortress Collier restarted construction and committed to repay syndicated mortgage lenders."

Fortress’ release comes less than a week after reports that it, along with Centro Mortgages, FFM Capital, FSCO and a number of other entities and individuals, including Fortress president Jawad Rathore, were named in a suit brought forth by two investors in the Collier Centre project.

The plaintiffs are seeking general damages in the amount of $25 million; exemplary, punitive and aggravated damages of $2.5 million; accounting of all funds paid to the defendants by the plaintiffs, as well as funds paid by the development to the defendants; and that the defendants give up all profits made, among others, according to a statement of claim issued earlier this month.

That suit can be viewed here.

According to Fortress’ release, construction of the non-residential building will be complete this year and residential units are “close to 100% sold.”

"Our commitment to this project since purchasing the Mady Collier assets has never wavered,” Rathore said. “In addition to the amount paid to purchase the Collier Centre, Fortress Collier has invested to-date an additional $5 million into the project. Fortress Collier will only realize profit on the project should the sale price exceed the amount of outstanding principal and interest owed under the mortgage given to the Mady Collier syndicated mortgage lenders."
  • Zero Discount on 2016-08-31 11:29:29 AM

    Back in April, they indicated that all units were sold:

    Now it's 78 out of the 82?

  • Doug on 2016-08-31 12:01:27 PM

    Zero D,

    Sometimes people cancel their deals. They could sell them at a higher price now, they are likely happy.

  • More Information on 2016-08-31 12:15:33 PM

    I was hoping to see a statement addressing some of the more egregious issues in the lawsuit that have a profound negative effect on the entire industry. For example:
    The ILA and practices around the costs and process (phone call?)
    Suitability, Risk Disclosure and lack of transparency in terms of KYP
    Language in seminars, marketing and written materials "secured"

    These are not all but a few issues that have not been addressed by Fortress and now is the time to come clean

  • Binder on 2016-08-31 12:23:09 PM

    100% right Doug. previous developer sold for what is under market now... I'm sure Fortress would prefer losing more sales!

  • Michele Hall on 2016-08-31 12:45:23 PM

    will have to wait to see how this washes out ... interesting to see if they have taken deposits from purchasers ... to bail themselves out of one mess and into another

  • Igor I on 2016-08-31 1:03:57 PM

    Why would you sue a project under construction? Why wouldn't you wait until it was done to see if you actually lost money?

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