The company has declared it is in financial trouble with $700 million in outstanding debts on 16 prime Vancouver properties, most of which are potential development sites.
It’s a fall from grace for a company that grew relatively quickly to amass a portfolio of 16 prime Vancouver properties. Coromandel’s petition pegs the combined appraised value of those sites, based on their existing use or Coromandel’s plans for them, at more than $1 billion.
The company now leases 12,000 square feet of space in the Georgia Street office tower for $19,892 a month, according to a list of assets and liabilities included in the court petition. “It’s not that often that you see this kind of thing in Vancouver, it’s generally a very well capitalized industry. Of course, like any industry — airlines or mining, it doesn’t matter what it is — there’s companies that are capitalized well, and other companies that run leaner and are managed with a higher degree of risk. There’s no industry where you don’t have a company here and there getting into difficulty,” said Stovell.
By 2016, the trend of massive amounts of capital flowing from mainland China to real estate markets around the world was underway. Large developers, equity investors and insurance firms from mainland China were making big purchases in the U.S. and across Europe. In early 2016, Beijing-based Anbang Insurance paid $1 billion to buy a set of four office towers in downtown Vancouver.
Instead, the company threw its support behind popular events like the Vancouver Cherry Blossom Festival and charitable causes such as the Vancouver Sun’s Adopt-A-School program. At the Vancouver Art Gallery, it joined some of the city’s high profile entrepreneurs, such as Artizia founder Brian Hill, as well as big corporate names, such as BMO and TD, in being a lead sponsor and backer of major exhibits, including Claude Monet’s Secret Garden and Takashi Murakami’s The Octopus Eats Its Own Leg.
Stovell said he does not personally know Zhong, but knows Louie from his time on city council, saying “he was a great councillor and did a lot for the city.”
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