8140 120 Street in Surrey, also known as Scott Plaza. (CBRE)

A retail centre owned by Surrey-based real estate developer Mortise Group that was placed under receivership last summer was sold earlier this year, according to filings in the Supreme Court of British Columbia, after a fairly speedy sales process.

The property is 8140 120 Street, a 3.1-acre retail plaza with 35,858 sq. ft of leasable space known as Scott Plaza that is located on the eastern side of 120 Street, which is also known as Scott Road and serves as the boundary between Surrey and Delta. On the opposite side of Scott Road is the Delta Shoppers Mall retail centre owned by Choice Properties REIT.

According to their corporate website, Mortise Group’s projects have been low-rise residential and mostly in the Fraser Valley. Their website also notes that they were a finalist for industry awards multiple times, including Georgie Awards — the awards held by the Canadian Homebuilder’s Association of BC — in 2021 and 2023.

It’s unclear if Mortise Group had plans to redevelop the commercial property, but court documents noted that the property is “zoned for certain residential units.” No development application appears to have been submitted.

Phase Two of Nova by Mortise Group was also placed under creditor protection in late-May. Stay tuned for that story. The Realist reached out to Mortise Group on June 1, but has not received a response.

The receivership was initiated by Toronto-based non-bank lender Institutional Mortgage Capital Canada Inc. — as general partner of IMC Limited Partnership — against the owners of 8140 120 Street in Surrey — Mortise (Scott Road Residential) Holdings Ltd., Mortise (Scott Road Office) Holdings Ltd., and Mortise (Scott Road Commercial) Holdings Ltd.

In their receivership application, dated May 15, 2025, IMC said it entered into a mortgage agreement with Mortise Group in October 2022 for the principal amount of $19,500,000. The loan had a “step up” interest rate of TD Bank Prime Rate + 7.00% or 10.50%, whichever is higher, and a maturity date of February 1, 2025.

Scott Plaza at 8140 120 Street in Surrey. (CBRE)

According to IMC, Mortise entered into an agreement in February 2024 to sell Scott Plaza in a transaction that was set to close on November 30, 2024 and the buyer paid a deposit. However, prior to completion, Mortise took out a second mortgage on the property from Bancorp Balanced Mortgage Fund II Ltd., Bancorp Growth Mortgage Fund II Ltd., Bancorp Financial Services Inc., and Mandate Management Corporation for the principal amount of $9,250,000.

IMC said it not learn about the Bancorp mortgage until about a month before the sale was set to close and did not consent to the second mortgage. The transaction failed to complete IMC said Mortise used the deposit for an unrelated development project.