Developer sells failed 1 Bloor condo-hotel property
August 19, 2009
Tony Wong
BUSINESS REPORTER
The site of the controversial 1 Bloor hotel and condominium project, which was to be Canada's tallest residential tower, has been sold.
Developer Bazis International released a statement late yesterday saying, "A well-established Toronto developer has entered into a binding agreement with Bazis International for the One Bloor property with closing in mid-September."
The Star revealed last month that the Kazakhstan-backed company intended to sell the property on the southeast corner of Yonge and Bloor Sts.
Hundreds of buyers had lined up for weeks to own a unit in the property in 2007. Units went for half a million and up. The penthouse was reportedly sold for $25 million.
Developer Michael Gold, the Canadian face of Bazis International, had stopped making payments on a $46 million loan in December. When the loan continued to be in default, a consortium of lenders tried to place the project in receivership.
The group offered $50.5 million to Gold. But he ended up selling the property to someone else.
"It is too early to discuss future development plans. However, further details will be made available at the appropriate time after closing. Due to the confidentiality agreement we cannot comment at this time," said the Bazis statement.
The sale likely means that 500 condo purchasers will not realize their dreams of living in the city's tallest tower. They are also waiting to hear of what will become of the $70 million in deposits held in trust by Gold's lawyers.
Toronto Star