Groupe Mach, which belongs to real estate magnate Vincent Chiara, has discreetly taken over the heritage building of the Marché Saint-Jacques. A secret agreement that would have been signed with the former owner, sued for more than eight million dollars, would deprive the City of Montreal of 260,000 dollars in transfer rights, noted The duty.
“We have become the owner of the commercial part of the Saint-Jacques Market,” confirms Daniel Durand, vice-president of marketing and communications at Groupe Mach, without detailing the timing or the value of the transaction. “The objective is to breathe new life into commercial spaces by improving the offer with local shops. »
Built in 1931, the Marché Saint-Jacques building is located in the Centre-Sud district of Montreal, on Ontario Street. The Art Deco building has exceptional heritage value, according to the City of Montreal, which sold it in 2006. In 2013, a company belonging to promoters Fonds Europa and Groupe BPAL announced the addition of a floor to the building as well as the conversion of spaces into condominium apartments and townhouses. The goal: to bring this valuable building back to life.
The president of Europa, Jean-Pierre Houle, declared at the time that he wanted to attract local businesses: “We think of a fishmonger’s, a Portuguese grill, a beer convenience store, a zinc bar, that is say a European-style bar counter, etc. We also hope to attract a branch of the SAQ. We want there to be a good synergy between the merchants and for the market to meet the basic needs of the residents, as was the case in its infancy. »
It is clear that the objectives have not been achieved. Since 2019, the commercial space has been mainly occupied by a Super C, whose initial 15-year lease is renewable for eight periods of five years each, i.e. a rental potential of 55 years. Does Groupe Mach plan to end the lease? “Currently, there are still premises available on the site to accommodate other local businesses,” replies Mr. Durand.
Prosecutions
The acquisition by Groupe Mach took place, out of sight, in a very special context, the former owners cumulating the lawsuits. Since 2020, the latter have been sued for $8.26 million by the co-owners of the residential spaces located on the upper floors of the Saint-Jacques Market.
The legal proceedings initiated allege latent defects, construction defects, design defects, deficiencies, contractual breaches and misrepresentations.
It is therefore in the midst of a legal tussle that the owner of the commercial spaces of the Saint-Jacques Market decides to dispose of it. While the assessment roll reached $8.2 million, the building was sold for $1 to Place Saint-Jacques, a company incorporated a few weeks earlier.
However, it turns out that the former promoters remain, on paper at least, the first shareholders of Place Saint-Jacques, according to the register of companies. Nevertheless, the new buyer is registered at the address of the second shareholder: Macan Holdings, one of the many companies of the Montreal real estate magnate Vincent Chiara, owner of Groupe Mach. It is Mr. Chiara who represents the new owner for a loan of 4.35 million granted by the Royal Bank of Canada five days before the transaction.
In the documents related to the proceedings, we also learn that the real buyer of the lots is the Mach Group. In September, promoter Jean-Pierre Houle was questioned about the existence of a counter-letter with Vincent Chiara’s company — or any other form of contract — that could complete the sale at $1. A counter-letter is a secret, legal agreement that cancels or modifies an apparent agreement.
” [M. Houle] lip service admits that additional compensation was paid by the Mach Group, but claims not to know the content,” reads a recent judgment. In the decision, it is specified that this “artificial device would have been created for the sole purpose of evading the payment of transfer duties [communément appelés la taxe de bienvenue] in the order of $260,000 which, were it not for this arrangement, would be due to the City. »
Note: in October, the Court authorized a seizure before judgment of the commercial spaces of the Saint-Jacques Market by the syndicate of co-owners of the condominium apartments. By this decision, he wants to prevent the former owners from putting themselves in a situation of insolvency with regard to creditors if a judgment was favorable to them.
In its judgment, the Court argues that it does not “give credibility to the testimony” of Mr. Houle: “He is clearly trying to hide the amount of the additional financial compensation received and the existence of a counter-letter with Groupe Mach. »
Mach Group declined to comment on the legal proceedings against the former owner. The company also provides To have to to possess ” [les] commercial spaces, 100%”, without however detailing the nature of the agreement.
With an estimated real estate portfolio of nearly 40 million square feet, Groupe Mach is the province’s leading private real estate owner. The Montreal company has continued to consolidate its portfolio in recent years. For example, the company that bought La Cordée in 2020 – and which tried to acquire 20% of Transat in 2019 – formalized last March the acquisition of 42 properties that previously belonged to the Cominar investment fund.