August 2021. The Mach Group is getting its hands on the mixed-use complex at 505-565, rue Saint-Joseph Est. The building houses 123 residential units, 26 commercial spaces as well as offices.
The transaction is valued at more than $43.6 million.
In the documents consulted by The Sun in the Quebec land register, a mortgage of three million was granted to the buyer by the former owner of the building, the developer GM Développement.
The quadrangle of buildings houses 123 residential units, 26 commercial spaces as well as offices. (Frédéric Matte/Le Soleil)
Three years later, the latter would claim his due.
Indeed, in the event of default, the company of Jean Campeau and Geneviève Marcon has the right “to collect the rents from the rental of the building”, it is indicated in the mortgage deed.
On October 29, a notice was sent to all tenants of the complex. Present and future rents must now be paid to GM Développement, it is stated in the letter signed by lawyers.
The following day, the Mach Group informed the occupants in a new missive not to change the recipient of their transfer as November 1st approached, despite the notice of withdrawal of authorization to collect rents which had given them been transmitted.
Confusion
Tenants who spoke with The Sun describe the climate of confusion that reigns. Who should they pay their rent to in order to avoid backlash?
One of them confides, on condition of anonymity, that he paid his rent to GM Développement. A second reported having made his transfer to the Mach Group following the guidelines of his lease.
The help of a lawyer was even requested in order to weigh the weight of this decision.
The tenants of the entire 505-565 rue Saint-Joseph Est find themselves sitting between two chairs. (Frédéric Matte/Le Soleil)
Moreover, in the notice sent, GM Développement maintains that in the event that the rent is paid to the Mach Group, the tenants “will be required to pay twice”. Occupants are also required to hand over the leases in force, without delay.
Among the tenants, we denounce the fact of being involved in the situation. And to suffer the potential consequences.
“Inappropriate”
Contacted by The Sunthe Mach Group, whose managing director is Vincent Chiara, confirms that a “commercial dispute” is underway.
The director of communications, Sylvie Rousseau, adds, by email, that she was made aware of the sending of a notice to the tenants of the building by GM Développement. In response, she maintains that the Mach Group “quickly informed its tenants that they should ignore this inappropriate communication”.
The promoter did not want to make additional comments, considering the legalization of the case.
For its part, GM Développement did not wish to comment on the matter.
– With the collaboration of Simon Carmichael
