In a surprising turn of events, Richmond's luxury Versante Hotel has been sold for $51.5 million following a rare live auction in the BC Supreme Court. The sale concludes a dramatic legal process initiated by foreclosure proceedings against the property, which opened its doors in 2021.
Key Takeaways
- The Versante Hotel, a 100-room luxury boutique property, was sold for $51.5 million.
- The sale followed a dramatic live auction in the BC Supreme Court, a highly unusual event in such proceedings.
- The hotel faced foreclosure due to a loan agreement default, with outstanding debt reaching $79.7 million.
- The final sale price was significantly lower than the initial debt but exceeded a prior offer.
The Foreclosure and Receivership
The Versante Hotel, located at 8499 Bridgeport Road near Vancouver International Airport, was initially listed for sale in April 2024 after a foreclosure proceeding was launched in January 2024. The lenders initiated the action due to a loan agreement default. The outstanding debt at the time of the foreclosure grant was $79.7 million, with interest continuing to accrue.
Concerns arose that the owner, Mo Yeung “Michael” Ching, through his company Sunwins, might be interfering with the sales process. This led to the foreclosure proceeding being converted into a receivership, granting lenders more control over the property. The hotel was then re-listed on an unpriced basis.
A Bidding War Unfolds
Interest in the hotel was high, with 68 parties signing confidentiality agreements and 11 touring the property. Two offers were initially made, but one buyer withdrew their bid on August 18, citing uncertainty related to the Cowichan Tribes ruling on land ownership.
A subsequent offer of $48 million from Citation Property Holdings Ltd., an affiliate of Hong Kong-based Pacific Aegis Capital Management, was set to be presented to the court on October 24. However, the day before, a last-minute bidder, Silverport Properties Ltd., emerged with a new offer.
Justice Fitzpatrick decided to hold a live auction the following day. This rare event saw brokers step back as the two parties engaged in a verbal bidding war, with incremental increases ranging from $100,000 to $500,000. The auction concluded when Silverport Properties Ltd. refused to increase its final bid, allowing Citation Property Holdings Ltd. to secure the property at $51.5 million.
A Rare Spectacle
Brokers involved described the live auction as a dramatic and exciting departure from the typical sealed-bid process. While infrequent, such auctions are permitted under court-ordered sales to ensure the best possible price is achieved. The transaction is scheduled to close on December 10.
