A civil lawsuit filed by a former vice-president of a leading Vancouver development firm highlights severe financial challenges across several flagship projects. Rhiannon Mabberley launched the claim against Westbank Project Corp. in December, alleging breach of contract after departing her role as vice-president of development in early 2025. She seeks $1.2 million, citing terms from her prior employment agreement.
Westbank counters that the payments hinged on profits from projects under her oversight, which fell short. The company provides no specifics on the profit shortfalls in its response.
Affidavit Reveals Insider Insights
An affidavit from Mabberley includes a September text message from Westbank founder Ian Gillespie, offering a candid view of the company’s struggles. Sent four months after her exit and three months before the lawsuit, the message addresses unprofitable high-profile Vancouver developments:
- The Sen̓áḵw complex near the Burrard Bridge, initially a 50/50 partnership with the Squamish Nation before Westbank divested to Ontario Pension Trust. Gillespie notes, “the last minute negotiations resulted in me having to accept a 30% haircut from the original price … which itself was 50% less than we had agreed to last year.”
- The recently opened Alberni and Butterfly towers in downtown Vancouver. He states, “Alberni still has many unsold units and … Butterfly is well over budget and closings are slow and uncertain.”
- The Oakridge Park redevelopment, launched in 2019 and still unopened. Gillespie reports it is “way behind schedule.”
The message concludes with Gillespie proposing $200,000 to Mabberley, adding, “and then we can both go our separate ways,” and “it’s unfortunate but it’s the reality of the industry these days.” Westbank declines to verify the texts, noting they remain unproven in court.
Broader Industry Challenges
Howard Chai, a Vancouver-based independent real estate journalist tracking Westbank for years, views the issues as typical rather than isolated. “Westbank is a prominent developer, they’ve been around for a long time, they have a lot of high-profile projects so the magnitude is a bit different,” Chai explains. “But I think the trouble that they’ve had is not really just exclusive to Westbank … pre-sale purchasers not closing out purchases, bills being overdue and not paid, and just the struggle for good liquidity is common.”
Many Vancouver developers grapple with similar pressures, often hidden due to their private status. Public glimpses emerge only through lawsuits or insolvencies. Partnerships with publicly traded real estate investment trusts expose some finances, revealing sales and demand far below recent norms.
Chai ponders, “One thing I am kind of focused on and curious about or looking into is just whether or not we really hit rock bottom.” He notes a potential slowdown in insolvencies, suggesting monitoring for signs of recovery.
