Economic downturn, slow rental market pushes Saskatchewan landlord to creditor protection

A group that owns hundreds of apartments in Saskatoon and Regina is in the red and has been granted creditor protection.

In its application, the group says getting the protection isa means of allowing itto "carry on business" as usual and determine how it can restructure its finances.

The group which is referred to as "the petitioners" in the court document is largely made up of businesses incorporated or registered in British Columbia, though some Block1 and CIsask are incorporated in Saskatchewan. The application itself was filed in B.C.

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According tocourt documents, some of the properties were bought with the intention of renovating them and then increasing the rental rates paid by tenants. Those renovations have been slower than expected due to the weather, shortage of workers and shortage of funds.

The documents go on to say that matters were made worse due to the downturn in the province's economy and the impact that has had on the rental market.

Due to vacancy, some properties are losing money every month.

The application said the group will be monitored as it looks at how it can restructure. It may even consider refinancing or selling some of the properties.

The group's lawyer did not respond to CBC'srequest for comment.

Tenants should be OK, says rentalsman

Saskatchewan's Office of Residential Tenancies said rental agreements with the current tenants of the properties owned and managed by Block 1 shouldn't be affected.

"The rental agreements are still valid and binding and enforceable through this office against Block 1 or anybody who may be administering the company on behalf of Block 1under the creditor protection order," said Dale Beck, the office's director.

Beck added thatif the properties are sold, the new landlord has the same obligations to the tenants as the former one.

Properties owned by the group in Saskatoon

• 235 Lenore Dr.: 24 units.
• 103-115 Reindeer Rd.: 91 units.
• 172 Pinehouse Dr.: 81 units.
• 508 Main St.: 30 units.
• 300 108th St. W.: 18 units.
• 424 Main St.: 47 units.
• 230 Stillwater Dr.: 144 units.
• 820-840 Idylwyld Dr.
• 640 Main St. E.:74 units.
• 235 Willis Cres.: 185 units.
• 241 Willis Cres.: 172 units.

Properties owned by the group in Regina

• 14-26 Lorne Pl.: 101 units.
• 75-99 Michener Dr.: 71 units.
• 6703-6725 Rochdale Blvd.: 71 units.
• 10 Michener Dr.: 75 units.