The long-stalled development that was to become Colwood’s Capital City Centre may soon have a new owner.
On Oct.9, the Supreme Court of B.C. approved an agreement that will see North American developer Onni Group begin to take control of the development.
“The transaction is a two-step process that is expected to close in December,” League Assets CEO John Parkinson said in an email.
Though Onni’s application was approved in court, there are still a number of steps that need to be taken, including a 30-day waiting period before the deal is finalized.
Onni Group submitted a bid of $17.5 million for the properties, which will be used to pay out two Colwood secured creditors, the priority claim of Peoples Trust and outstanding property taxes.
Onni will also provide an additional $8.9-million consideration, which will be given to unsecured creditors after adjustment for costs.
Though the consideration falls far short of completely paying off the unsecured debt, which amounts to nearly $135 million in claims, it’s at least a partial recovery that wasn’t expected with other offers on the properties.
Onni’s acquisition also means that the City of Colwood could expect to see some forward development of the site in the future, though the company has not released any specific plans at this time.
“It’s in a very prominent location, so any activity to bring it to completion would be welcomed, that’s for sure,” said Colwood Mayor Carol Hamilton.