A nearly complete mixed-use retail and residential rental project has been pushed into receivership in London, Ont., as its lender alleges construction delays blew up an initial $18-million construction budget and dozens of contractors claim millions in unpaid work.

London’s Applewood Marketplace Inc. may be just one of many developments to face financial trouble amid grinding delays and rising costs affecting the building industry. Data from the real estate research and data company Altus Group shows roughly 60 per cent of residential and commercial projects are facing delays of about a third of their original timetables.

Court filings from construction lender MarshallZehr Group Inc. allege that Applewood owes it more than $58-million, with the interest on all that debt surpassing $36,000 per day. Contractors have also filed liens for $8-million in unpaid work.

There are two named principals for Applewood Marketplace, located on former farmland on the northern edge of London: Mike Clawson and Perry Sempecos. Mr. Clawson up until recently was primarily known as a London-based custom home builder, and Mr. Sempecos is part of a family business in real estate and commercial development.

The court documents contain unproven allegations that have not been tested in court. Mr. Sempecos declined to comment and Mr. Clawson, whose colleagues said went on a month-long vacation to Europe starting in mid-July, could not be reached.

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