Receiver Of Thind District Northwest Project Finds $86M Stalking Horse Bid

The troubled District Northwest development in Surrey, British Columbia, has taken a significant step forward in its court-supervised sale process. The project's receiver has secured an $86 million "stalking horse" bid from BM Group, a construction firm based in Coquitlam. This bid sets a minimum price for the property, encouraging other potential buyers to submit higher offers.

District Northwest, planned by Thind Properties, was envisioned as two high-rise towers comprising 1,023 residential units. Before financial difficulties halted progress, approximately 85% of these units had been pre-sold. The project entered receivership in November 2024 after Thind defaulted on a loan from KingSett Capital, with debts exceeding $88 million.

The sales process, pending court approval, is designed to be swift. Letters of intent from interested buyers are due by May 9, with final bids required by June 13. To surpass BM Group's offer, competing bids must exceed $87.5 million, accounting for a $500,000 minimum increase and a $1 million break fee.

BM Group's proposal includes a $3 million deposit and plans to acquire the project through a reverse vesting order, a method that can offer tax advantages. If approved, the transaction is expected to close within ten business days, with a final deadline set for September 10.

The outcome of this sale is particularly significant for the 873 buyers who had already purchased units in the development. Their investments hinge on the project's completion and the terms agreed upon by the new owner. The receiver has not yet detailed how these pre-sale agreements will be handled under new ownership.

This situation reflects broader challenges in the real estate sector, where rising interest rates and construction costs have strained developers. Thind Properties is also facing receivership proceedings for other projects, including Highline in Burnaby and Minoru Square in Richmond, with combined debts of approximately $220 million.