Lender alleges millions in unpaid GST and withheld payments as it seeks receivership
KingSett Mortgage has accused Metro Vancouver developer Thind Properties of misappropriating millions of dollars, including $7.5 million in Goods and Services Tax (GST) funds that were allegedly withheld from the Canada Revenue Agency (CRA).
The claims are part of two recent petitions filed in BC’s Supreme Court, as the lender seeks to recover over $300 million tied to major condo developments in Surrey, Richmond, and Burnaby.
KingSett Mortgage initially filed a petition in October to place Thind’s Surrey condo project under receivership, a request granted by the court. Earlier this month, the lender filed a second petition seeking receivership for Thind’s developments in Richmond and Burnaby to oversee the sale of assets and ensure the proceeds are distributed appropriately.
The lender claimed receivership is necessary to prevent the borrowers from “absconding with funds” owed to KingSett, citing what it alleges are prior instances of misappropriation. These allegations have not yet been tested in court.
“This abscondence of funds is concerning to KingSett,” the petition states, noting that Thind is indebted to the lender for a combined $220.9 million on the Richmond and Burnaby projects.
Across the three developments, KingSett said it is owed more than $305 million, with daily interest accruing at $99,431. The breakdown includes $146 million tied to the Burnaby property, $74.9 million for the Richmond property, and $85 million for the Surrey project already under receivership.
Thind’s Surrey development, approved by city council in 2020, has pre-sold approximately 90% of its units, but construction has yet to begin. Following the appointment of KSV Restructuring as receiver, financial records revealed over 100 creditors tied to the project, including $85.7 million in secured debt to KingSett and $11.7 million owed to unsecured creditors such as engineering firms, real estate brokerages, and BC Housing.
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Thind Properties previously opposed the Surrey receivership but did not prevail in court.
KingSett Mortgage Corp., a subsidiary of KingSett Capital, also declined to comment. KingSett Capital manages $18 billion in assets and describes itself as “Canada’s leading private equity real estate investment firm.”
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