A Vancouver lender has petitioned the B.C. Supreme Court to appoint a receiver for a medical office project near the new St. Paul’s Hospital, saying the borrower, a Vancouver developer, defaulted on two mortgages totalling more than $60 million.

Shape Capital Corp. says it provided credit facilities of $65 million to a subsidiary of Keltic Canada Development Co. Ltd. for a 10-storey medical office building on Prior Street lands near the future hospital site.

Shape’s Aug. 25 petition says it issued a notice of default to Keltic on Feb. 7 for the latter’s alleged failure to fulfil various mortgage commitments. Shape said it also “became aware that the borrower had misappropriated $3.2 million from the holdback account established for the benefit of the contractors on the project.”

Shape s

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