Mizrahi Development Group (The One) Inc., Mizrahi Commercial (The One) LP, and Mizrahi Commercial (The One) GP Inc., the companies behind the high-profile The One skyscraper project at Yonge and Bloor in Toronto, were placed into receivership on October 18, 2023. This action was taken by KEB Hana Bank, trustee of IGIS Global Private Placement Real Estate Fund No. 301 and No. 434, which are owed approximately $1.2 billion.
The One, an 85-storey mixed-use skyscraper with retail, hotel, and residential units, began construction in 2017 with an expected completion by 2022. However, the project has faced significant challenges, including delays, cost overruns, and disputes between the principal investors, Sam Mizrahi and Jenny Coco. These issues have set the project back by two years and it is estimated that it will require hundreds of millions more to complete.
KEB Hana Bank, as trustee of IGIS Global Private Placement Real Estate Fund No. 530, agreed to provide up to $315 million for the project's development and the receiver's costs during the receivership process. A&M was appointed as the receiver.
Legal advisors involved in the process included Dentons for the companies, Osler for KEB Hana Bank, Goodmans for the receiver, BLG, Henein Hutchinson, and McCarter Grespan for Mizrahi Inc., Sam M Inc., and Sam Mizrahi, and Fogler Rubinoff and Torys for Coco International Inc. and 12823543 Canada Ltd.