Two Kitchener developers owed more than $100 million but had less than $300 in their bank account when they lost control of their unfinished, 15-storey condominium tower on Weber Street East, a new report says.

The report provides more detail around the financial meltdown of the Elevate housing project, before lenders persuaded a court to order the project into receivership in October. Receivership assigns control to a court appointee who can sell assets to pay outstanding debt. 

Development partners Werner Leuschner and Kamal Patel pre-sold all 177 units in the unfinished tower plus 325 units in other proposed towers before they ran out of money, court documents indicate.

The developers have not responded to interview requests left with people at addresses listed as their residences. “I’m not the spokesperson for that project,“ a man said Tuesday, shutting the door on a reporter who asked if he is Patel.

Condo buyers in the first tower agreed to pay an average of $470,000, according to a list of buyers and prices. Down payments averaged $92,000.

KSV, the Toronto-based restructuring firm acting as the receiver, told condo buyers in October that their purchase agreements remain in full force and “there are no steps that you need to take in this regard at this time.”

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