Infinity development set to showcase tallest buildings between Vancouver, Calgary
Katie Mercer, The Province; with files from Staff Reporter Glenda Lyumes and from Canwest News Servi
Province
An artist’s depiction of the five-tower Infinity development near Surrey Central SkyTrain station, the largest in the city’s history.
The credit crunch hit home in Surrey yesterday, with the largest residential complex in the city’s history filing for court protection from bankruptcy.
PriceWaterhouseCoopers is scrambling to attract new developers to refinance the $350-million Infinity project.
Robert Millar of Fasken Martineau DuMoulin LLP, the law firm representing Jung Developments Inc., said the Korean company has been granted interim relief from its creditors while it tries to attract new developer interest.
“There are extraordinary credit conditions affecting many businesses around the world and they do not reflect the reality of local conditions, which remain strong,” he said.
Jung Development’s Hee Yong Yang, who also goes by the name Edmond Yang, is “yet another reputable developer” who has been impacted by worldwide tightening in the credit and financial markets, Millar said.
Three unnamed Vancouver-based development companies have reportedly expressed interest in becoming financial partners with Jung Development, he added.
But Infinity’s financial woes may be more concerning for the 560 pre-sale buyers who have already handed over their deposits.
Millar said the deposits are “safe” and that the developer is “moving quickly to protect the interests of these pre-sale customers” by ensuring the project is completed on time and on budget.
The so-called Sky Towers in the Infinity project would be the tallest buildings between Vancouver and Calgary, creating a new Surrey downtown core in the Whalley area.
The first of five towers in the 1,400 residential-unit project, a 36-storey tower, is already completed and occupied. Two further towers are three-quarters built. And zoning has been approved for the final two towers.
The development is planned for three hectares at the Surrey Central SkyTrain Station and Surrey‘s Simon Fraser University campus.
Sales for the towers still under construction are expected to yield about $170 million, including the pre-sale agreements. The cost to complete the project is estimated at less than $100 million.
There are reportedly no construction-cost overruns.
Surrey Mayor Dianne Watts blamed the development’s financial problems on “what has been happening on Wall Street and the market.”
She said she’s optimistic new partners will join the development and that buyers will receive their units on time.
Infinity is just one of 45 planned developments for central Surrey, she said.
“It’s sort of a gateway project, so it is in everyone’s best interest to ensure they get the financing,” said Watts.
“Given what happened in the market, I think people are being cautious . . . I know they’ll get this resolved.”
© The Vancouver Province 2008