A highrise mixed-use project at the corner of Yonge Street and Ellerslie Avenue in Toronto has been placed under receivership, according to filings in Ontario Superior Court, an unusual turn of events for a project that is nearly at the finish line.

The project was being undertaken by Ontario-based G Group Development and consists of a 31-storey condo building and a 10-storey office building with a shared two-storey commercial podium at 5220-5250 Yonge Street.

G Group secured financing from non-bank lender Romspen Investment Corporation in 2013 that — after several amendments over the years — included a $125 million acquisition facility, a letter of credit facility, and a $250 million construction facility.

G Group Development Corp., G Group Management Inc., 2217439 Ontario Inc., Thornrich Investments Ltd., Guizzetti Corporation, Stefano Guizzetti, and Giocomo Scivoletto served as the guarantors of the loan.

The events leading up to the default were not outlined, but Romspen says it issued a demand for payment on Oct. 1, 2025 and G Group consented to the receivership on Oct. 6. Romspen says it was owed $185,284,882.44 as of Sept. 30, which includes principal and interest on all three facilities as well as various fees. Interest is accruing at a daily rate of $68,411.94.

Agreements with the City of Toronto

G Group is the second developer to default on a mortgage tied to 5220-5250 Yonge Street. According to a City of Toronto report from February 2017, a previous developer was planning a 29-storey residential tower and a 15-storey hotel tower on a shared podium, received approval from Toronto City Council in July 2012, but then defaulted on its mortgage in September 2012.

The properties were made available for purchase via power of sale in June 2013 and ultimately acquired by G Group in October 2013 for $28,430,000, the city report states. It also recommended small parcels of surplus city-owned land between the properties be sold to G Group.

Court documents state that, as part of the project, G Group was required to convey a “social facility unit” in the new building to the City of Toronto. The letters of credit — one for $1.2 million and one for $1.3 million — were used to secure this obligation.

Because the developer was unable to complete construction on the commercial space and deliver the social facility space before the condos were ready to be sold as the agreement required, G Group and the city amended their agreement in November 2024, with the developer providing an additional $1 million of cash security.

A June 2025 city report indicates the social facility space will be leased at a nominal rate to The Neighbourhood Group Community Services, which supports low-income individuals and families, for five years. The space will serve as “a community hub offering integrated social and cultural programs and services, including newcomer services, language classes, settlement services, employment, and peer support services.”

According to Romspen, G Group was also involved in litigation with Talisker Realty Corporation that was ultimately settled with an agreement that G Group would transfer 26 residential units — including both condos and rental replacement units — plus 27 parking spaces and 27 locker units to Talisker.

“Urgent” need for a receiver

Romspen says there is an urgent need for a receiver because the project is “at a standstill” as a result of 14 construction liens being registered. Court documents indicate those liens total just over $8.5 million.

“In the face of the construction liens, no lender will advance funds to complete the Project without the appointment of a receiver, manager and construction lien trustee with the power to borrow funds in priority to the Debtor’s encumbrancers and sell the Inventory,” Romspen wrote in the application. “Moreover, unless the Project is completed, a number of the Debtor’s pending sale transactions will be lost. It is, therefore, urgent that a receiver, manager and construction lien trustee be appointed immediately.”

The residential component is known as the Ellie Condos and appears to have been largely completed. Romspen states the condominium declaration for the residential component was registered in February 2025 and the liens were registered against the remaining inventory owned by the developer, which includes 12 condos and 53 parking and/or locker units.

Units that have been conveyed are not subject of the liens or receivership.

Reflecting how close the project is to completion, Romspen said a progress report issued on Sept. 30, 2025 by the project’s independent cost consultant concluded the cost to complete the project was $4,183,978 in hard costs and $196,664 in soft costs. The “pending sale transactions” are referring to 11 commercial units, for which $12,346,201.23 in deposits has been collected.

Romspen says the social facility space also must be completed to avoid the city drawing on the letters of credit and cash securities.

The Ontario Superior Court granted the receivership order on Nov. 3, with Fuller Landau now serving as the receiver.

RENX has reached out to G Group and Romspen for comment, but as of publication had not received a response.