The notable rise in interest rates since the beginning of the year has hurt Groupe Sélection, a major builder and manager of seniors’ homes that has had to put itself under the protection of the Creditors Arrangement Act.
On Monday, the company announced that it had filed to protect itself from its creditors at the time of a financial restructuring. Groupe Sélection specifically pointed to the consequences of the pandemic, inflation and rising interest rates to explain the financial setbacks.
Groupe Sélection, thanks to its restructuring, intends to slow down its development projects to focus on those already in operation.
The company confirmed in a press statement that “the financial restructuring process will not have any impact on the operations in our complexes and mainly targets construction and development and some management companies in the group.”
Principal Laval emphasized that the thousands of tenants scattered across its compounds should not feel the effects of this restructuring.
“Our priority is to maintain the quality of services provided to our residents and tenants. Thanks to this approach, more than ever we want to draw on our expertise and promote the maintenance of active and healthy lives for our seniors, residents, tenants and employees.
“This measure has nothing to do with bankruptcy, on the contrary, this situation is temporary and is intended to allow Groupe Sélection to continue investing in health and remain a leader in the economic development of Quebec,” added the founding president and CEO. Group Officer, Real Bucklin.
Groupe Sélection currently operates or develops approximately 70 real estate complexes in Quebec, representing more than 14,000 residential units for retirees and multiple condominiums. The company employs about 5,000 people.
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