The developer behind some of Vancouver's most iconic buildings hasn't repaid a cent of its $85 million loan
A pension fund meant to secure the retirements of Ontario public servants is now chasing down a Vancouver real estate developer through the courts, the latest sign that institutional money poured into Canadian real estate during the boom years is facing a painful reckoning.
Bloomberg reported that OPTrust applied for receivership in March after Westbank Holdings' subsidiary Joyce Holdings failed to repay an $85m term loan that matured in December 2025, and the BC Supreme Court granted the order on April 27, appointing KSV Advisory as receiver.
As of March 19, OPTrust said it was owed $109m, with interest accruing at $60,136 per day.
Westbank founder and chief executive Ian Gillespie acted as a guarantor on the loan, court documents showed.
The asset in question is Joyce II, a nearly complete 35-storey, 360-unit rental tower at 5083 Joyce St. in east Vancouver.
KSV Advisory reported $286m owed to 20 secured creditors and another $6m to dozens of unsecured creditors tied to the project, the Vancouver Sun reported.
National Bank of Canada, the senior lender owed roughly $165m, issued a notice of default to Westbank in January; OPTrust demanded full repayment in March.
OPTrust also alleged cost overruns and 11 builders' liens totalling more than $10m against the property.
OPTrust and Westbank said in a joint statement that the receivership was “undertaken co-operatively” and that “building operations and leasing continue, and residents are not impacted.”
Some units are already occupied, with leases signed by both commercial and residential tenants.
The pension fund's exposure to Westbank runs deeper than Joyce II.
Bloomberg reported that in 2025, OPTrust bought out the developer's entire stake in Sen̓áḵw, the Squamish Nation's multi-tower development in Kitsilano.
Westbank's financial position appears to be deteriorating more broadly.
A former senior employee, Rhiannon Mabberley, alleged in a sworn statement filed April 29 in BC Supreme Court that the company is in “a financially precarious position” and has “laid off nearly half of its workforce,” the Vancouver Sun reported.
She also wrote that a pretrial garnishing order on Westbank's corporate bank accounts for $1.2m yielded only $32,025.37, which “suggests to me that Westbank has changed its operating accounts to protect its assets from creditors such as myself.”
Westbank spokesperson Ariele Peterson declined to comment on matters before the courts, adding that “none of these claims have been proven.”
None of Mabberley's claims have been proven in court.
Joyce II is currently Westbank's only project in receivership, though Canadian Mortgage Professional noted that real estate insolvencies spiked 42.5 percent in 2024 year-over-year, with receivership appointments in the sector reaching their highest level in roughly a decade.
