Press Release

Peterson to Pursue Resolution to Partnership Impasse and Cause Debt Repayment as Part of Lender-led Court Process

(News Release -November 28, 2024)

Peterson Reaffirms Commitment to Complete Burnaby Master Planned Community with a Mix of Residential, Retail and Commercial Space

Vancouver, BC – November 28, 2024 — Peterson Group (“Peterson”), a leading real estate investment, development, property management, capital lending and private equity company, confirmed today that the former Saputo lands owned by Sperling Limited Partnership (the “Partnership”) are subject to a lender-led Companies’ Creditors Arrangement Act (the “CCAA”) proceeding in British Columbia Supreme Court (the “Court”). At a hearing on November 28, 2024, the Court granted an initial order to begin the CCAA process, and later in the process, it is expected the Court will ultimately order a Partnership restructuring or sale of the property owned by Partnership

Peterson entered into a joint venture with Create Properties (“Create”) in 2018 to develop a mixed-use community at 6800 Lougheed Highway, Burnaby, British Columbia (the “Project”).

The CCAA process is a result of a Partnership dispute and the following factors:

• • The Project mortgage is held by RBC as a part of a lending syndicate comprised of multiple major Canadian banks
  • Peterson is the majority owner, lead development manager and sole guarantor on the Project loan, but major decisions made by the Partnership require the agreement of both Peterson and Create, including budget and debt repayments, as is customary in joint venture agreements.
  • The term of the loan has expired, and the loan is now in default.
  • Despite Peterson’s intentions and ability to repay the debt in full, Create has refused to provide consent for the Partnership to do so or to seek a loan extension.
  • Peterson has been fulfilling its obligations as a loan guarantor, making 100% of the interest payments on the debt.
  • The Project’s lenders have commenced enforcement proceedings by initiating the CCAA process to force repayment of the outstanding debt.

Having exhausted all reasonable options to resolve the impasse with Create, Peterson supports a speedy resolution through the Court. Peterson is also committed to ensuring all Project lenders remain whole throughout the CCAA process and until this matter is resolved. Peterson is determined to complete the Project and will explore all avenues to achieve this.

While the Partnership undergoes the CCAA process, Peterson will continue to operate in the normal course, advancing its numerous active projects.

Over more than four decades, Peterson has built its reputation and many successful partnerships based on the values of integrity and transparency. In that spirit, Peterson is open about its intentions to restructure or acquire the Project, repay the debt in full and bring much-needed housing to Burnaby as quickly as possible.

Master plan rezoning for the Project lands was achieved earlier in 2024, and site-specific rezonings are underway. Once complete, the Project will host over 4,000 homes and substantial commercial and employment-generating space.

Bennett Jones LLP and Nathanson, Schachter & Thompson LLP are acting as legal advisors to Peterson, and Deloitte is acting as Monitor in the CCAA proceedings.

About Peterson

Starting from a single building on Alberni Street in Vancouver and extending to a range of projects across North America, Peterson Group (Peterson) has seen exponential growth, diversifying its capabilities within the real estate sector. Peterson holds ownership of 7.2 million square feet of income-generating properties and boasts over 2,100 residential and hospitality units. It has also played a significant role in the development of an additional 16.4 million square feet of property. Despite its impressive growth, Peterson remains rooted in its core values, prioritizing relationships, honouring its commitments, and aims to contribute meaningfully to building a better future for all.

Media Contact

Nicole Jerick
Talk Shop Media
604 738 2220
nicole@talkshopmedia.com