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Court approves sale of 110 acres on Langford's Skirt Mountain

A newly incorporated Vancouver-based company has control of 110 acres on the south side of Skirt Mountain after the B.C. Supreme Court approved a $17.5-million sale this week. The company, 1083103 B.C. Ltd.
Skirt Mountain development
Skirt Mountain development

A newly incorporated Vancouver-based company has control of 110 acres on the south side of Skirt Mountain after the B.C. Supreme Court approved a $17.5-million sale this week.

The company, 1083103 B.C. Ltd. — incorporated for the transaction — lists Philip George and Jeff Irving as directors. It was selected as the best bid for a property that has been subject to foreclosure proceedings for more than two years.

“This truly is one of the last large tracts of subdivision land that can be developed,” said Colliers Victoria senior vice-president Ty Whittaker, who had been handling the property on behalf of Carevest Capital.

The property consists of eight parcels ranging from 7.8 acres to 31.2 acres. Colliers initially listed the property for sale at $14.9 million in January 2015, but reduced it to $11.9 million in June of last year.

Whittaker said he suspects the numbered company will “tuck it away” and work through the various approval processes needed before the land can be developed.

“I think this shows you the strength and belief in the residential market right now,” he said.

The sale, to be completed Oct. 14, seems to have been made possible by Langford’s recent decision to push forward with the $5-million Bear Mountain Parkway, accessed via the Leigh Road/McCallum intersection off the Trans-Canada Highway.

While that parkway is to be the new main entrance to Ecoasis’ Bear Mountain development atop Skirt Mountain, the decision to build it also opened the possibility of developing the 110 acres.

“Twelve months ago, we had a number of issues with the property. First and foremost, we didn’t know when the [parkway] would punch through,” Whittaker said.

Langford is borrowing the money for the project and will tax property holders, such as Ecoasis and others in the area, to pay it off.

According to David Clarke, Ecoasis’ chief financial officer, the contract to construct the road is out for tender, with an expectation the winning bid will be selected before August. The parkway is expected to be completed by July 2017.

Clarke said the road provides certainty and clarity for Ecoasis and other developers in the area.

As for the sale of the 110 acres on the south side of the mountain, the neighbours to the north said they are happy to see more development, adding value to the area.

“What it means to us is we are very happy. We’re happy there is obviously new confidence in the market,” Clarke said.

“It helps all of us, and shows confidence in the West Shore.”

The final sale of the 110 acres, which is zoned for residential development, was triggered after Colliers and Carevest asked for court approval of an initial offer of $7.825 million from Pritchard Estates this week. That accepted offer was subject to court approval.

However, in foreclosure cases like this, the court opens the process to competing bids. On Tuesday, there were seven new offers initially put forward, some of them significantly higher than the Pritchard Estates bid.

When the court asked for the bids to be re-submitted later that day, there were six offers and the $17.5-million offer was accepted.

The sale price does not completely cover the debt owed to Carevest.

Carevest was owed more than $14 million when it foreclosed on Goldstream Heights Properties Ltd. in June 2014.

With interest accruing at 12.5 per cent per annum, that had risen to $18.2 million as of June.

aduffy@timescolonist.com