The quick rise and public fall of Vancouver’s Coromandel Properties

Coromandel Properties burst onto the Vancouver real estate scene about a decade ago with a splashy site purchase and land assemblies on the city’s west side. The company had a vision for getting these rezoned for mixed use and condo developments, while promoting itself as focused on long-term relationships built on trust.

Helmed by a sole director, Coromandel appeared eager to be known in the community. It built its brand by backing a popular festival and appeared alongside big corporate names and philanthropists as a top-tier sponsor of the Vancouver Art Gallery. In 2019, it brought on five-time Vancouver city councillor and former mayoral candidate Raymond Louie as its chief operating officer.

But now, Coromandel finds itself under scrutiny and the talk of the town. Its recent petition to B.C. Supreme Court seeking creditor protection reveals a pattern of high levels of leverage and repeated borrowing to hold onto properties while failing to develop them quickly enough.

The company has declared it is in financial trouble with $700 million in outstanding debts on 16 prime Vancouver properties, most of which are potential development sites. It is seeking relief under the Companies’ Creditors Arrangement Act, seeking time for the company to be restructured.