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Eron Lenders
Subject: Enterprise Business Park ("Enterprise")
Lender update
April 18, 2000
Further to our letter of August 19, 1998, we are writing to provide you with a further update on the status of the above noted mortgage.
Current Status
The sale of the Enterprise property located at 4243 Glanford Avenue, Saanich, B.C., to S-510 Holdings Ltd was approved by the Court and completed on August 27, 1999, for gross proceeds of $4,525,000.
The Judicial Trustee is currently being sued by Royal Lepage with respect to their claim to one-half of the sales commission. The property was originally listed for sale by Goddard & Smith until December 31, 1998, and was subsequently listed with Royal Lepage. The selling commission was paid to Goddard & Smith since they were the listing agent for the property when the purchaser first made an offer. Our solicitors, Campney & Murphy, are of the opinion that Royal Lepage has no claim to any sales commission relating to the sale of the Glanford property. However, if successful with its lawsuit, Royal Lepage could potentially recover approximately $60,000 from the Judicial Trustee.
We retained the services of Complete Asset Management, former property managers of the Glanford property, to collect certain tenant receivables on behalf of the Judicial Trustee on a contingency basis. Based on discussions with Complete Asset Management, the Judicial Trustee could receive approximately $30,000 from their efforts.
We estimate that there should be a recovery of Lender funds with respect to this project, the amount of which is dependent on: (1) the indirect cost allocation; and (2) the matters described above.
Lender Communications
We will continue to communicate directly with all lenders. However, we urge you to take advantage of the web site at http://www.eron-pwl.com for project specific updates as well as related Court orders and other general information. The Eron Lenders Committee has set up an information line, which can be reached by dialling (604) 878-4484. If you need information on reclaiming tax paid on interest income in prior years, please call David Craig at (604) 713-6680.
Should you have any questions, please contact your representative on the Enterprise Business Park Project Lender Committee.
Yours very truly,
Judicial Trustee
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