Oct 24, 2011
$18M Land Sale in Clarington
Real estate partners, Leor Margulies and Peggy Spadafora, and senior law clerk, Helen Wright, of Robins Appleby & Taub LLP, completed a sale in February 2011 under power of sale on behalf of the Bank of Montreal and CIBC, of a large development tract of land in Clarington comprising over 1,500 potential residential lots. The sale price was just under $18M and included a sizeable Vendor Take-Back Mortgage. The sale was completed pursuant to a public RFP but was backstopped by an unsolicited "stalking horse " bid which had been received by the lenders from another purchaser in advance of the RFP. The stalking horse bid guaranteed a minimum price in the lenders' hands, subject to payment of a breakage fee in the event the lenders chose to accept a higher bid. As a result, the lenders were able to secure a significantly more attractive bid for the property.