The developers behind three of Montreal’s highest-profile residential construction projects have overcome a supply chain snag after a company responsible for supplying prefabricated facade panels for the projects went out of business.
The closure of a Drummondville, Quebec-based company that uses the names Beaulieu Revêtement and Signé Hurtubise among others, led to construction delays for three of the flashiest residential projects underway in the heart of downtown Montreal. Two from real estate developer Devimco, the Maestria and the MAA, got hung up in the process.
The developer has resolved the supply issue and said that it will not hinder the completion of the projects. A representative from Devimco told CoStar News in an email, "..We were quickly able to identify new suppliers to minimize the impact on the delivery of our projects," the spokesperson said.
Real estate developer Brivia’s downtown development called the Mansfield, a project that was previously delayed due to financing issues, also reportedly suffered a construction delay due to the company closure. Brivia did not immediately return written and phone requests for comment on the status of its project.
The issue comes at a time when many real estate developers and government housing bodies in Quebec and elsewhere in Canada have embraced the prefabricated model as a means to help resolve the slow pace of builds that the Canada Mortgage and Housing Corp. believes will lead to a shortage of 3.5 million homes in Canada by 2030.
Major investors in the prefabricated construction segment include the CDPQ public pension fund that invested in ABM Modulaire in July, and the Quebec Housing Corp., or Société d’habitation du Québec, that has promised to build 500 prefabricated homes.
The issues faced by Devimco and Brivia began when Beaulieu Revêtement and Signé Hurtubise closed down in October after falling $24 million into debt, according to the receivership review overseen by Raymond Chabot, a Montreal-based insolvency trustee.
The Drummondville company was divided into manufacturing and installation sections, with most of the 400 employees employed on the installation side.
The manufacturing side of the business, known as Revêtement Louyse and later renamed Revêtement Beaulieu, was launched about three years before running into financial difficulties. Its bankruptcy proceedings were overseen by trustee, FTI Consulting.
Maibec, a company based in Lévis, Quebec, later purchased the manufacturing assets of the defunct Drummondville company and has since resumed some production, CEO Patrick Labonté confirmed in an email to CoStar News.