The Decline of Westbank

[whatnext]

I’ve been surprised at how little discussion there’s been about the decline of Westbank considering how prominent they’ve been in the city’s development industry over the past twenty years. Bloomberg has an article on them today:

Luxury Condo Developer Westbank Faces Project Woes, Lawsuit Says
By Thomas Seal
February 23, 2026 at 4:00 AM PST

Canadian luxury real estate developer Westbank Projects Corp. was struggling with losses and delays on a string of high-profile projects as recently as September, according to a lawsuit from a former executive who claims she’s owed money….

….Gillespie spelled out a list of issues with Westbank projects, according to the affidavit.

The Alberni, a distinctive high-rise tower in Vancouver designed by the firm of famed Japanese architect Kengo Kuma, has “many unsold units” and vendor take-back mortgages outstanding, the message said. The recently opened Butterfly, another unique condo tower in Canada’s third-largest metro area, “is well over budget and closings are slow and uncertain,” Gillespie said, according to Mabberley.

Two other Westbank projects, including First Light in Seattle, have “an increasing budget” and uncertainty in the company’s ability to close units, the text said.

Oakridge Park, a C$6.5 billion mixed-use mega-development of more than 5 million square feet, with more than 3,000 residential units, is due to open its first phase to the public in 2026. But it’s “way behind schedule,” Gillespie’s alleged message reads.

Finally, the sale of the first phase of Senakw, a large high-rise residential project being developed with an Indigenous group on their territory, was a financial disappointment for Westbank, the affidavit text added….

https://www.bloomberg.com/news/articles/...-says?srnd=homepage-canada&sref=x4rjnz06

[csbvan]

There's been tons of discussion. This is literally the place that I heard about their troubles before learning about them through the industry. I get that you think this forum is just a place to complain, or post negative news, but most people here have a wider view of what the forum is.

[Alex Mackinnon]

That probably has more to do with who these projects are aimed at.

I'm not sure how many people on here are willing to spend over $2000 / ft². I'd be willing to bet it's very few, especially considering how strange the interiors on projects like the Butterfly have been.

Westbank is prominent, however they've been falling apart for a while, and their projects have generally kept progressing due to the partners they have. It hasn't changed too much from an outside observer's perspective.

[whatnext]

Originally Posted by csbvan

There's been tons of discussion. This is literally the place that I heard about their troubles before learning about them through the industry. I get that you think this forum is just a place to complain, or post negative news, but most people here have a wider view of what the forum is.

Oh for pity’s sake. Yes, there has been some discussion in their various floundering projects but not a discussion of the health of the company as a whole. Odd, given their prominence in the city. And the editors of North America’s pre-eminent business journal seem to find it worthy of examination.

[whatnext]

CBC piece by Justin McElroy yesterday. It surprises me that Westbank got so much less for their share in Senak'w than they expected. I would have thought that being pure rental, in a good location it would have gone for top dollar.

• Video Link

[Changing City]

Originally Posted by whatnext

Oh for pity’s sake. Yes, there has been some discussion in their various floundering projects but not a discussion of the health of the company as a whole. Odd, given their prominence in the city. And the editors of North America’s pre-eminent business journal seem to find it worthy of examination.

There extensive discussions about the state of Westbank at the end of 2023 in the Rumours thread when Steve Saretsky suggested a major developer was about to become bankrupt, and you jumped on the suggestion that it might be Westbank.

In December 2025 you said "Like I said in the other thread, I’ll dance on their grave when company goes down."

Your anti-Westbank bias is consistent.

[whatnext]

Originally Posted by Changing City

There extensive discussions about the state of Westbank at the end of 2023 in the Rumours thread when Steve Saretsky suggested a major developer was about to become bankrupt, and you jumped on the suggestion that it might be Westbank.

In December 2025 you said "Like I said in the other thread, I’ll dance on their grave when company goes down."

Your anti-Westbank bias is consistent.

Oh absolutely. It is total schadenfreude for them.

That doesn't explain forumers getting all weepy when a discussion is initiated about the company as a whole. Especially given the prominent projects they were involved in.

[WarrenC12]

Originally Posted by whatnext

Oh absolutely. It is total schadenfreude for them.

That doesn't explain forumers getting all weepy when a discussion is initiated about the company as a whole. Especially given the prominent projects they were involved in.

Who's getting weepy?

Capitalism is doing what it does. This is a side effect of price reduction in the market.

[Migrant_Coconut]

If they fold, they fold, but I have no real reason to dance on their grave, and it seems that nobody else here does either.

[officedweller]

Companies come and go.
The principals will come back with another venture if they fail.
Even Millennium Developments came back.

[Changing City]

Originally Posted by officedweller

Companies come and go.
The principals will come back with another venture if they fail.
Even Millennium Developments came back.

I assume Westbank have mostly solved, or are solving the worst of the problems. We've observed the sale of a whole range of assets, including some commercial buildings and some of the rental residential buildings, but they still retain some in their portfolio. They have completed their expensive starchitect towers here, and still have units to sell, but they don't have anything like that under construction. They have Oakridge and Senakw associated with the company, but they seem to have limited liability with them as they no longer have an ownership interest.

Currently they have a new American CEO, and seem to be still be developing a series of buildings in San Jose, switching earlier office proposals to residential. There are building designs there by James K M Cheng, Bjarke Engals, Kengo Kuma amongst others. There are three Vancouver rental towers, including one for BC Housing, that they are just getting rezoned, but where they seem to be development managing rather than directly developing. They probably still have a portfolio of development sites here - there's no sign of them selling off sites that they have already submitted projects, but haven't developed yet.

We only know anything about the way that they have dealt with their obvious financial crunch that they have been working through from projects that have stalled - although none like Terrace House in Coal Harbour - and from court cases involving contractors and former employees. They are an entirely private company, so they don't have to reveal anything except in those situations.

Given the negativity that a few people like Whatnext have to their continued existence as a business, you can understand why.

[Spr0ckets]

Originally Posted by Migrant_Coconut

If they fold, they fold, but I have no real reason to dance on their grave, and it seems that nobody else here does either.

I read that in Ivan Drago's voice.

(...and with the appropriate accompnaying dispassionate, and Soviet robotic dead tone)

Smart kids will get the reference*.


(*Also,....sorry for the dated 1980's reference for all the GenXer's/Boomers out that did get it)

[phesto]

Originally Posted by Changing City

I assume Westbank have mostly solved, or are solving the worst of the problems. We've observed the sale of a whole range of assets, including some commercial buildings and some of the rental residential buildings, but they still retain some in their portfolio. They have completed their expensive starchitect towers here, and still have units to sell, but they don't have anything like that under construction. They have Oakridge and Senakw associated with the company, but they seem to have limited liability with them as they no longer have an ownership interest.

Currently they have a new American CEO, and seem to be still be developing a series of buildings in San Jose, switching earlier office proposals to residential. There are building designs there by James K M Cheng, Bjarke Engals, Kengo Kuma amongst others. There are three Vancouver rental towers, including one for BC Housing, that they are just getting rezoned, but where they seem to be development managing rather than directly developing. They probably still have a portfolio of development sites here - there's no sign of them selling off sites that they have already submitted projects, but haven't developed yet.

We only know anything about the way that they have dealt with their obvious financial crunch that they have been working through from projects that have stalled - although none like Terrace House in Coal Harbour - and from court cases involving contractors and former employees. They are an entirely private company, so they don't have to reveal anything except in those situations.

Given the negativity that a few people like Whatnext have to their continued existence as a business, you can understand why.

The American CEO left the company after less than 3 months...presumably got a look under the hood and was scared off. All of their US projects are in dire trouble and things would appear to be worsening for Westbank.

[Changing City]

Originally Posted by phesto

The American CEO left the company after less than 3 months...presumably got a look under the hood and was scared off. All of their US projects are in dire trouble and things would appear to be worsening for Westbank.

Thanks. You obviously have better information than is available from published sources. (I should have written president, not CEO). He appears still to be involved with Westbank - "Darren Tangen currently works as a Commercial Real Estate Consultant at Westbank Corp, where he previously served as president." I know the Seattle projects were in similar situation to the Vancouver ones a while ago, but the company seemed to be still advancing the BIG designed residential project in San Jose only a couple of months ago.

Given the dire predictions in 2023, and subsequent asset sales, it seemed like they'd regrouped. I guess we'll see how things go from here.

[officedweller]

Exclusive: Peterson Buys Out Westbank From Mirvish Village In Toronto
https://howardchai.substack.com/p/peterson-westbank-toronto-mirvish-village-buyout

[hollywoodnorth]

image credit >> https://giphy.com/gifs/simpsons-nelson-the-RG3lm5VlrbDV7YNana

[whatnext]

For those who missed it, an extensive article and interview with Ian Gillespie in the Vancouver Sun. When did he become CEO again?

Anyway, he seems fairly optimistic. I'd forgotten he'd built the Residences on Georgia.

Exclusive: Westbank CEO on Oakridge, data centres, and recent lawsuits and disputes
Westbank, with a reported $50 billion in projects completed or under development, is focused on the future, says founder Ian Gillespie in a rare interview
Author of the article: Dan Fumano
Published May 29, 2026

...Through the 1990s and 2000s, Gillespie was regularly profiled and interviewed by local and international newspapers and magazines while his company had a meteoric rise, transformed Vancouver’s skyline, and set off on major projects in other markets.

In recent years, however, while the company has been in the headlines for reasons businesses prefer to avoid, Gillespie has eschewed interviews and retreated, at least somewhat, from the limelight.

During a nearly two-hour conversation at the Fairmont Pacific Rim, one of the downtown landmarks Gillespie developed, he responded to some old criticisms of Westbank and, for the first time, publicly commented on recent news stories about the company.

He seems unbothered about recent adversity, and focused on the future.

“I’m moving forward,” he said. “It’s not about the past.”...

https://vancouversun.com/news/local-news/westbank-feature?utm_source=substack&utm_medium=email