It’s largely about the pre-sales in construction lending these days—and one of Canada’s headliner projects (the $500 million Ritz Carlton Vancouver) just didn’t have enough.
"To get financing, you need a certain amount of presales – and because we didn’t have enough units sold, financing didn’t turn out the way we wanted," said project spokesman Joo Kim Tiah to the Globe.
62 of the 123 Ritz condos were sold, or just over 50%. A few years ago that might have been enough to get the project financed and completed. But not in this market. In the Ritz’s case, its banks wanted over 60% pre-sales. (Lenders are now looking for upwards of 75% in other big condo projects around the country.)