Court Orders Sale of Union Bay Estates Developer Kensington Island Properties
A court has ordered the sale of Kensington Island Properties (KIP) as a result of $100 million in debt. As of December 31, 2023, the total amount due and owing to the Petitioners, pursuant to their Loan B Agreement, their Loan B Security, and their Forbearance Agreements, was $78,867,149.52, plus interest of 30% per annum, compounding monthly. This development proposal has been stalled for many years as the developer was not able to fulfill promises made to the Union Bay community, and requirements of the CVRD relating to sufficient water supply, and investments in sewage and other public infrastructure.
It’s important to note that this may not be the end of the story for this massive development project that was slated to be built over many years, starting with a “”200 slip marina” and a residential village, a hotel, and large retail amenities. The primary creditor is listed as Fox Island Development Ltd., owned by Advanced Venture Holding Co. Ltd., which may find a way to reorganize the project and debt, and attempt to continue with this project, but would be subject to the water and sewage regulations pursuant to the the Province, the CVRD and the Union Bay community.
Significantly, Kensington Island Properties had also made commitments to K’omoks First Nation, in an agreement to share the cost of public infrastructure, all of which are now in doubt. (original reporting by allthingsunionbay.com) edited by TIG.
