Key Takeaways
- • Victoria Press Building, a landmark downtown Victoria property at 2621 Douglas Street, has entered receivership with approximately $41 million in debt owed to Timbercreek Mortgage Servicing Inc. and affiliated partners, following a mortgage default as early as April 2023.
- • Merchant House Capital acquired the heritage newspaper building in 2017 with plans for comprehensive mixed-use redevelopment, including street-level retail, 120,000 square feet of office space, and a planned 12-storey rental tower with 160 units on the adjacent surface parking lot.
- • The initial restoration and reconfiguration of the Victoria Press Building was completed several years ago, but the broader development vision—including the 12-storey residential component—has stalled, with the first and third floors remaining vacant since winter 2023.
- • The original mortgage was originated in July 2020 by Timbercreek Mortgage Servicing Inc. for $48.75 million and was later assigned to 2292912 Ontario Inc., establishing first-ranking security over the property.
- • The receivership places prime downtown Victoria real estate on a court-ordered sales path, representing a significant setback for a marquee urban redevelopment project in British Columbia's capital city.
Summary
The Victoria Press Building, an iconic two-storey warehouse-size property originally constructed in the early 1970s and long home to the Times Colonist newspaper, has been placed into receivership in 2025 following a mortgage default by developer Merchant House Capital. According to B.C. Supreme Court filings, the company owes approximately $41 million to Timbercreek Mortgage Servicing Inc. and affiliated lenders, with the debt having accumulated following a default that occurred as early as April 2023.
Merchant House Capital acquired the property in 2017 with ambitious redevelopment plans positioning it as an urban campus-style mixed-use environment. The firm completed restoration and reconfiguration work that transformed the property into street-level retail and 120,000 square feet of office space. A complementary project converted the Print Reel Building—which housed the newspaper's printing presses—into a distillery and tasting room. However, the development trajectory derailed before completion of the master plan's final phase: a planned 12-storey rental tower containing 160 units on the surface parking lot behind the main building, which Merchant House described in 2023 as "the final step in realizing a comprehensive vision to redevelop the entire property."
The financial foundation for the development rested on a first-ranking mortgage originated in July 2020 by Timbercreek Mortgage Servicing Inc., an affiliate of Timbercreek Financial Corp., for a principal amount of $48.75 million. Timbercreek later assigned its interest to 2292912 Ontario Inc. The property's first and third floors have remained vacant since winter 2023, signaling the project's operational challenges well before the formal receivership filing.
The receivership now places this prime downtown Victoria real estate on a court-ordered sales trajectory, representing a material loss for the broader urban redevelopment landscape in British Columbia's capital and for the lender group holding security over the substantially encumbered asset.
Merchant House Capital acquired the property in 2017 with ambitious redevelopment plans positioning it as an urban campus-style mixed-use environment. The firm completed restoration and reconfiguration work that transformed the property into street-level retail and 120,000 square feet of office space. A complementary project converted the Print Reel Building—which housed the newspaper's printing presses—into a distillery and tasting room. However, the development trajectory derailed before completion of the master plan's final phase: a planned 12-storey rental tower containing 160 units on the surface parking lot behind the main building, which Merchant House described in 2023 as "the final step in realizing a comprehensive vision to redevelop the entire property."
The financial foundation for the development rested on a first-ranking mortgage originated in July 2020 by Timbercreek Mortgage Servicing Inc., an affiliate of Timbercreek Financial Corp., for a principal amount of $48.75 million. Timbercreek later assigned its interest to 2292912 Ontario Inc. The property's first and third floors have remained vacant since winter 2023, signaling the project's operational challenges well before the formal receivership filing.
The receivership now places this prime downtown Victoria real estate on a court-ordered sales trajectory, representing a material loss for the broader urban redevelopment landscape in British Columbia's capital and for the lender group holding security over the substantially encumbered asset.
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