District REIT properties placed into receivership with about $78.8M in CMLS debt

Properties in the District REIT portfolio, under the Valour Group, have been placed into receivership, in a distressed multifamily case that touches Toronto, London, Brantford, and Saint John, New Brunswick.

 

Insolvency Insider published Nov 1 that an order was granted Oct 28, with EY as receiver. CMLS debt was about $78.8M at Oct 5. Eight mortgaged properties carry 307 rental units, including properties on Gamble Ave and Beaty Ave in Toronto, Savoy St in London, West St in Brantford, and in Saint John, New Brunswick. They are part of a 28 property portfolio appraised at about $218.4M at Dec 31, 2025.

 

The filing points to an operating shortfall of $4.4M and property tax arrears of $447,251, with mortgage payments missed from July to October 2026. Respondents said the seven REIT owned mortgaged properties were appraised at about $84.5M, against about $68.9M claimed, and a Colliers disposition process was already underway. A request for a 90 day adjournment was rejected.

 

For investors, the case is a reminder that appraised value, claimed value, and lender recovery are three different numbers, and that tax arrears and missed payments can force a sale process even while a disposition is already being run. Distressed multifamily in Ontario markets that C&Co. covers deserves underwriting on the lender's numbers and the actual rent roll, not on the portfolio appraisal alone.

 

Source: Insolvency Insider, published Nov 1, 2026, order granted Oct 28, 2026.