Ontario Public Service Employees’ Union Pension Plan put a new residential tower in Vancouver in receivership to recoup C$109 million ($80 million) from developer Westbank Holdings Ltd.
It’s a fresh sign of distress in the once-effervescent Canadian real estate market.
OPTrust had extended a C$85 million term loan to a Westbank subsidiary for its Joyce II tower of 360 rental apartments, which was completed in 2025, according to Westbank’s website. The senior creditor is National Bank of Canada, which is owed C$166 million, according to an affidavit from an OPTrust executive published on receiver KSV Advisory’s website.
Westbank is the well-known Vancouver developer behind some of Canada’s most striking buildings of the past two decades. In the past two years, it’s faced acute financial and legal difficulties and sold off key projects amid higher costs, rising interest rates and fewer buyers. For example, OPTrust bought out Westbank from its landmark Senakw project in 2025.
“The appointment of a court-supervised receiver has been sought to ensure the project can reach final completion in an orderly and timely fashion,” OPTrust and Westbank said in a joint statement. “Building operations and leasing continue, and residents are not impacted.”
National Bank issued a notice of default to Westbank in January, and OPTrust demanded immediate repayment in March. The loan matured in December 2025 and the Westbank subsidiary Joyce Holdings didn’t repay “any portion,” OPTrust alleged in its court application. National Bank didn’t immediately respond to a request for comment.
Joyce Holdings’ loan from OPTrust is incurring interest of C$60,136 per day, court documents said.
OPTrust alleges cost overruns as well as 11 builders’ liens totaling more than C$10 million have been filed against the property.
“OPTrust is extremely concerned that its security in the property and in the other assets of the debtors has deteriorated and is at significant risk of further deterioration,” one document read.
Westbank founder and Chief Executive Officer Ian Gillespie acted as a guarantor, documents said.
Written by: Thomas Seal — With assistance from Ari Altstedter @Bloomberg
The post “OPTrust Goes to Court to Recoup $80 Million From Westbank Tower” first appeared on Bloomberg