A major Vancouver developer’s recent move seeking creditor protection is unusual because of the size of the company and its portfolio, but not necessarily indicative of a larger trend in the sector, industry observers say.

As Postmedia first reported earlier this week, Vancouver real estate development firm Coromandel is seeking creditor protection, citing financial problems and more than $700 million in outstanding debt.

Lawyers for Coromandel filed a petition this week in B.C. Supreme Court, seeking time to deal with financial issues and asking the court to appoint Deloitte Restructuring to monitor the proceedings. The matter is set for a court hearing next week.

Coromandel began acquiring and developing real estate projects around 2013, the petition states, and the company now owns 16 prime Vancouver properties in various stages of development. The petition says the combined appraised value of the properties, based on their existing use or Coromandel’s plans for them, is more than $1 billion.

“That’s quite a portfolio to put together in a fairly short period of time,” said Ron Rapp, CEO of the Homebuilders Association Vancouver. Rapp said while the development industry is facing “headwinds” including interest rates, staffing and inflation, he doesn’t expect to see a wave of other major developers also seeking creditor protection.

“Nothing that we’ve seen so far is pointing to any kind of systemic or endemic potential for insolvency,” Rapp said. “Most of the folks who are part of our membership, they are acting more conservatively. … They are being a little bit more circumspect, a little bit more cautious. But I don’t see anybody circling the wagons, throwing up white flags all over the place.”

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