Troubled Central Park Ajax Project Finds Buyer After 3 Years Under Receivership

The long-struggling Central Park Ajax development has found a buyer after three years of financial and legal challenges. Located on Harwood Avenue South in Ajax, the ambitious project by LeMine Investment Group fell into receivership in April 2021. Its financial troubles were compounded by appeals and delays, which hindered progress for years.

Originally envisioned as a major mixed-use development, the project was mired in debts, including an $18.5 million charge against the property. Various encumbrances complicated its sale, as did the town’s conditions for new ownership, which required a development agreement and compliance with local housing needs. These factors deterred initial bidders, forcing the property into multiple rounds of sale attempts.

In October 2023, 1000612843 Ontario Inc., affiliated with Lakeshore Luxe Design and Build Group, emerged as the buyer. The Ontario Superior Court approved the sale under terms requiring the assumption of existing mortgages and adherence to a revised development agreement with the Town of Ajax. Despite optimism, initial sale processes had failed to close, keeping uncertainty alive until late 2024.

Ajax’s Town Council had remained a key stakeholder throughout, even positioning itself as a backup buyer during negotiations. The town had previously sought receivership to safeguard its interests, citing inaccuracies in earlier claims about project readiness. It ultimately facilitated the sale by collaborating with the appointed receiver, TDB Advisory, and modifying terms to attract credible buyers.

The development is seen as a pivotal step for Ajax, a town facing increasing demand for housing and mixed-use facilities. However, the challenges surrounding Central Park underscore the risks inherent in pre-construction projects and their reliance on meticulous planning and strong financial backing.

While the future of the project remains cautiously optimistic, it highlights broader issues in Canada’s real estate sector, including affordability pressures and the delicate balance between public and private interests in urban planning.