A sharp rise in interest rates since the start of the year is hurting Group Selection, a major builder and manager of seniors’ residences that should be under the protection of the Lenders’ Arrangement Act.
The company announced on Monday that it has filed a request to protect itself from its creditors, as it plans to carry out a financial restructuring. Group selection has particularly pointed to the consequences of the pandemic, inflation and rising interest rates to explain its economic failures.
Group Selection, thanks to its restructuring, will slow down its development projects to focus on those already underway.
“This financial restructuring process will have no impact on operations in our complexes and will mainly target the group’s construction, development and specific management entities,” the company assured in a press release.
The Laval flagship has assured thousands of tenants spread across its complexes that they will not feel the effects of this renovation.
“Our priority is to maintain the quality of services provided to our residents and tenants. Thanks to this approach, we want more than ever to rely on our expertise and promote active and healthy living for our seniors, residents, tenants and employees.
“This policy has nothing to do with bankruptcy, on the contrary, this situation is temporary and intended to allow the selection of the group to invest in health and lead economic development in Quebec,” said the founding president and chief executive. Group Selection Officer, Real Bouklin.
Groupe Selection currently manages or develops approximately 70 real estate complexes in Quebec, representing more than 14,000 housing units and multi-dwelling units for retirees. The company employs around 5,000 people.