The city of Calgary – based real estate developers has obtained court-ordered creditor protection for mot than 50 commercial properties as it looks to restructure, citing the poor state of Alberta’s economy.
Strategic Group CEO Riaz Mamdani said the company’s revenues have dropped significantly over the past five years and continue to fall as the office vacancy rate in its portfolio has gradually risen. The cost of filling those vacant spaces has continued to grow.
The prolonged downtown of the Alberta economy and its negative impact on the office real estate market,” citing Calgary’s high downtown office vacancy rate that continues to hover around 25 per cent.
Mamdani said Strategic Group has converted seven office buildings to apartment rentals, as well as other to storage facilities and food halls
Strategic Group Granted Creditor Protection For 56 Properties, Citing Poor Economy Darren Makowichuk –