The large Hedge Road Landing subdivision project in Georgina, Ontario, near Lake Simcoe, has entered creditor protection as construction is ongoing, according to the Ontario Superior Court.
This project is divided into three phases. Phase One is located at 6213 Black River Road and features 144 cottage-style bungalows. As per court documents, 75 units are finished and sold, 24 units are under construction with 23 pre-sold, and 45 units haven’t started yet with 13 already pre-sold. The next two phases will be on nearby vacant land and are planned to include 168 units along the Lake Simcoe waterfront.
The development’s website describes it as an “adult active lifestyle community,” offering bungalows starting from the low $820,000s “to qualified purchasers,” with several units listed online.
The project is managed by 2055226 Ontario Inc., which is owned by three entities: Alliance (Sutton) Inc., Berkstar Developments Inc., and Rose Sutton Limited Partnership. Each holds a 33.33% stake according to court filings, while Alliance Homes acts as the construction manager.
For this venture, the developers secured financing from Waterloo-based non-bank lender Marshall Zehr. They received one loan for $48,553,000 for Phase One and another for $16,050,000 intended for the remaining phases.
The loans were due on January 1 and March 1 of 2026 but remain unpaid. As of August 13, Marshall Zehr is owed a total of $42,907,636.19 with interest still accruing.
Marshall Zehr noted that the developers have also fallen behind on payments to various contractors and suppliers; seven liens totaling $5.7 million have been filed against the Phase One property since February.
“Construction Liens have created a significant impediment to the recommencement of construction activities at the Project and construction continues to be delayed,” stated the Monitor appointed by the court in a report accompanying Marshall Zehr’s creditor protection request. “Construction activities have largely ceased since April 2026. In the Proposed Monitor’s view, continued delay in recommencing construction increases costs, delays home completions and closings, and may adversely affect the value of the Project.”
An overview of Hedge Road Landing. (Alliance Homes)
In an affidavit dated August 17, Alliance Homes’ President Alex Troop attributed some difficulties faced by this project to market downturns affecting liquidity which led to slowed construction – a common issue seen during this cycle of insolvencies.
“205 [the ownership entity] has unfortunately been seriously impacted by the downturn in the GTA real estate market demonstrated both by reduction in land values and a reduction in new home sales,” said Troop. “205 has not sold a new home since January of 2025 which has impacted cash flow and our ability to pay for building units already contracted for sale. Consequently, our last closing was on March 31 of this year.”
Troop mentioned that some buyers have voiced their concerns to the Home Construction Regulatory Authority (HCRA), which is currently reviewing those issues. He also expressed worry that warranty provider Tarion might take actions harmful to this project. Additionally he stated he’s personally invested $600,000 into it but can’t keep doing so.
Creditor Protection
The Ontario Superior Court approved Marshall Zehr’s application on August 24 placing Hedge Road Landing under creditor protection per federal law under Companies’ Creditors Arrangement Act (CCAA).
This process aims to pause any enforcement actions against this project so it can reach completion.
Currently there are ten units in Phase One expected to be finished within three months that have been pre-sold. The Monitor engaged Daniel Foch from Valery Real Estate (and STOREYS contributor) for his opinion on unit values; he found that price increases between 5% and10% could potentially happen if these homes are remarketed (if presales are canceled). However, the Monitor pointed out that such assessments “do not take into consideration any negative stigma associated with CCAA Proceedings or litigation risks.”
As a result, the Monitor decided to proceed with existing presale agreements already established; they submitted an application outlining steps needed for completing remaining sales which was approved by court on August28.
Typically creditor protection applications are granted initially for ten days after which extensions may be requested if necessary. After Hedge Road Landing received creditor protection on August24, the stay has now been extended until November13 of2026 when further updates should be available.
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