The City of Vancouver sold more than $62 million of properties that it took over in early 2011 from Millennium Development to help chisel away at the Olympic Village debt.
In April 2011, the city announced Millennium ceded 32 properties that were appraised at $82.2 million, but worth an estimated $45.48 million after mortgages. A list provided to the Courier by city hall this week shows $101.5 million in the sale of properties that carried $34.03 million in mortgages plus $2.3 million for commissions and closing costs. The gross includes the $3 million spent by the city to buy 177 West Pender St. for an affordable housing project.
On April 28, the city announced Aquilini Investment Group became the secured creditor of SEFC Properties Ltd. in a $91 million deal for the city’s remaining 67 condos. While Mayor Gregor Robertson claimed the $630 million debt was retired, he admitted Millennium never paid the $170 million it owed for the land. SEFC was put in receivership in November 2011 and filed for bankruptcy in March 2014.
The last remaining property is the $7.05 million-assessed 1327 Marine Dr. in West Vancouver. A sale is pending but not yet final. The sale was delayed because the building was demolished after an Oct. 28, 2012 restaurant fire that West Vancouver Police believe was the work of arsonists.
“We have identified suspects, but are not in a position to forward a charge recommendation to Crown counsel. Anyone with information regarding this is still encouraged to contact our Criminal Investigation Section,” Const. Jeff Palmer told the Courier.
According to B.C. Land Title and Survey, the Shoppers Drug Mart property at 1583 Marine Dr. in West Vancouver sold last year for $8.6 million to 8549737 Canada Inc., whose address is also the drug store chain’s Toronto headquarters.
Also in 2013, the FedEx building at 4270 Dawson St. in Burnaby sold for $15.018 million to 0916038 B.C. Ltd., whose president is Hartanto Tjoa, developer of the Raffles on Robson tower.
The eight ground floor commercial strata units from 4208 to 4248 Dawson St. sold for $3.6 million in 2012 to De Vita Holdings Ltd. and Sobkow Holdings Ltd., which are connected to the De Vita and Gabrielle families.
In 2011, properties at Deer Park in Toronto and three sites in Burnaby sold for a total $1.952 million. The city netted $1.2 million after $742,498 in mortgages were deducted. A company connected to Nature’s Path organic cereal cofounder Ratana Stephens paid $18.01 million in 2012 for the Province Building at 198 West Hastings.
The biggest transactions between the city and a single entity were in 2013 when Polygon Development paid $43.02 million for four properties in North Vancouver’s Esplanade area. The $19.17 million in mortgages meant the city netted $23.86 million.
“The amount of money they got was similar to the estimates,” remarked real estate consultant Michael Geller. He said the appraisal reports should be published so citizens can see the experts’ assumptions behind the values.
“(Appraisals) can also be works of fiction,” he said. “AACI — appraisal according to client’s instructions.”
The City of Vancouver could have gained more assets from Millennium and its principals Shahram Malekyazdi and Peter Malek. City manager Penny Ballem signed a Feb. 2, 2011 discharge from a mortgage worth $1 billion and the city opted not to pursue their holdings outside of Canada. Millennium remains highly active with developments like Boheme on East Hastings, Alexandra at Davie and Haro and One Madison Avenue in Burnaby. The company website continues to display the Vancouver 2010 Winter Olympics “official supplier” status logo.
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