Key Takeaways
- • KingSett Capital now owns four insolvent Vandyk Group projects (Uptowns, Heartlake, Lakeview and Ravine) after a credit bid totalling more than $362.1 million, approved by the Ontario court on April 27, 2026.
- • The purchase price comprises $271.3 million of aggregate debt owed to KingSett plus $90.8 million in amounts lent to the receiver to fund the proceedings.
- • A second court-ordered sales process launched in January 2026 and led by CBRE's Land Services Group drew zero letters of interest and zero bids, leaving the lender with no third-party buyer.
- • KingSett is completing construction outside of receivership, which it judged would reduce costs, after projections indicated a shortfall on the amounts it is owed.
- • The deal is one of several large lender credit bids in Ontario and B.C. as prolonged market weakness keeps insolvent projects unsold, following KingSett's bids for Labatt Village and Highline Metrotown and Romspen's bids for Woodbine Mall and Atmosphere.
Summary
Two and a half years after forcing several projects by Ontario developer Vandyk Group into receivership, KingSett Capital is now the owner of four of them, according to filings in Ontario Superior Court, as reported by The Globe and Mail. The four projects, Uptowns and Heartlake in Brampton and Lakeview and Ravine in Mississauga, were the subject of a consolidated receivership application filed on November 7, 2023 by KingSett Capital and Dorr Capital, both Toronto-based private equity real estate investment firms.
The projects comprise Uptowns, a 342-unit stacked townhouse project at 10302 Heart Lake Rd. with 329 units presold; Heartlake, a 200-unit stacked townhouse project at 10194 Heart Lake Rd. with 109 units presold and construction yet to begin; Lakeview, two mid-rise condo towers at 1345 Lakeshore Rd. E. with 478 units, 390 presold, plus commercial space; and Ravine, a subdivision at 336 Waterhouse Cres. N. with 39 detached and six semi-detached homes, five presold. As of March 2026, KingSett was owed amounts across the four projects that, per the filings, included $28.1 million plus $75.3 million in construction financing for Uptowns, $64.6 million plus $12.6 million for Heartlake, $29.9 million plus $134.2 million for Lakeview, and $44.3 million plus $2.9 million for Ravine. The Lakeview loan was originated by Dorr Capital and syndicated to include KingSett.
The projects went through a court-ordered sales process in 2024 that produced no buyers. The receiver and KingSett then hired contractors to advance construction. Financial projections led KingSett to conclude late last year that it would face a shortfall on amounts owed, and it chose to buy all four projects and complete construction outside receivership, which reduces certain costs. A new sales process launched in January 2026, led by CBRE's Land Services Group, also produced zero letters of interest and zero bids. In a transaction approved by the court on April 27, 2026, KingSett acquired the projects through a credit bid, with the purchase price made up of $271.3 million in outstanding debt and $90.8 million in secured amounts lent to the receiver.
KingSett has used similar credit bids elsewhere, including $84.1 million for the Labatt Village project in Toronto and $98.6 million for unsold condos at Highline Metrotown in Burnaby, B.C. KingSett declined to comment. The Globe reports that other lenders, including Romspen, have made large credit bids on insolvent projects such as Woodbine Mall in Ontario and the Atmosphere project in British Columbia.
CBRE's Mike Czestochowski, vice-chairman and head of the Land Services Group, said that lenders typically prefer to work out distressed situations and that options depend on the asset, from rezoning land to hiring a contractor or entering a joint venture on partially built buildings. He said big banks have been notably patient with distressed borrowers. The Globe attributes the trend to a prolonged market downturn that has deterred developers from large acquisitions, leaving many insolvent projects unsold for dozens of months while interest accrues and legal fees mount.
The projects comprise Uptowns, a 342-unit stacked townhouse project at 10302 Heart Lake Rd. with 329 units presold; Heartlake, a 200-unit stacked townhouse project at 10194 Heart Lake Rd. with 109 units presold and construction yet to begin; Lakeview, two mid-rise condo towers at 1345 Lakeshore Rd. E. with 478 units, 390 presold, plus commercial space; and Ravine, a subdivision at 336 Waterhouse Cres. N. with 39 detached and six semi-detached homes, five presold. As of March 2026, KingSett was owed amounts across the four projects that, per the filings, included $28.1 million plus $75.3 million in construction financing for Uptowns, $64.6 million plus $12.6 million for Heartlake, $29.9 million plus $134.2 million for Lakeview, and $44.3 million plus $2.9 million for Ravine. The Lakeview loan was originated by Dorr Capital and syndicated to include KingSett.
The projects went through a court-ordered sales process in 2024 that produced no buyers. The receiver and KingSett then hired contractors to advance construction. Financial projections led KingSett to conclude late last year that it would face a shortfall on amounts owed, and it chose to buy all four projects and complete construction outside receivership, which reduces certain costs. A new sales process launched in January 2026, led by CBRE's Land Services Group, also produced zero letters of interest and zero bids. In a transaction approved by the court on April 27, 2026, KingSett acquired the projects through a credit bid, with the purchase price made up of $271.3 million in outstanding debt and $90.8 million in secured amounts lent to the receiver.
KingSett has used similar credit bids elsewhere, including $84.1 million for the Labatt Village project in Toronto and $98.6 million for unsold condos at Highline Metrotown in Burnaby, B.C. KingSett declined to comment. The Globe reports that other lenders, including Romspen, have made large credit bids on insolvent projects such as Woodbine Mall in Ontario and the Atmosphere project in British Columbia.
CBRE's Mike Czestochowski, vice-chairman and head of the Land Services Group, said that lenders typically prefer to work out distressed situations and that options depend on the asset, from rezoning land to hiring a contractor or entering a joint venture on partially built buildings. He said big banks have been notably patient with distressed borrowers. The Globe attributes the trend to a prolonged market downturn that has deterred developers from large acquisitions, leaving many insolvent projects unsold for dozens of months while interest accrues and legal fees mount.
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