Fortress Real Developments speaks out

The syndicated mortgage provider 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."
 

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COMMENTS

  • by Ali 2017-03-08 6:50:28 PM

    Brock Village which is another project by Fortress in the city of Pickering was sold to purchasers back in 2016 and was recently cancelled. Monies were not refunded and the purchasers in spite of continuous follow-up on the project were kept in the dark.
    Fortress is launching the same project with a new plan and at a higher sale price about $200k higher to benefit from the hot housing market. Fortress is bracing for a major lawsuits by these purchasers as Fortress from the get go knew the units were purchased in bad faith. Buyers Beware!

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