Gracorp And Fiera Real Estate In Legal Battle Over JV Project In Vancouver

Gracorp Properties and Fiera Real Estate are in a legal conflict over their joint venture to develop a 16-storey rental tower at 1045 Burnaby Street in Vancouver. This ambitious project, intended to provide market and below-market rental housing, now faces delays due to disagreements between the two companies. Gracorp, which owns a 10% stake, claims Fiera has unreasonably withheld approvals and unjustly tried to terminate their agreements.

At the core of the dispute is a “crane swing and underpinning easement agreement” with an adjacent property, which Gracorp argues was approved by Fiera initially. Later, however, Fiera accused Gracorp of breaching their co-owner agreement by failing to seek necessary permissions beforehand. Fiera responded by issuing a default notice and attempting to exercise a discounted buy-out option for Gracorp’s share.

Gracorp is seeking legal intervention, arguing that Fiera's actions were unwarranted and breached their agreements. They are asking the British Columbia Supreme Court to declare the termination notices invalid and to uphold their right to continue with the project. Meanwhile, Fiera has countered, emphasizing trust issues and stating that Gracorp’s actions compromised their joint interests.

The outcome of this case will likely impact the future of the Burnaby Street project, with the court set to determine whether Gracorp’s stake will remain or be taken over by Fiera, which aims to continue independently if it wins.