Rennie Marketing Systems is suing Shape Properties Corp. and a group of related firms over what it claims are more than $16 million in unpaid real estate marketing fees for work done on massive property developments near Brentwood Mall and Lougheed Mall.
Rennie Marketing Systems filed a notice of civil claim in BC Supreme Court on December 28. The defendants include 0862223 B.C. Ltd., Shape Properties Corp., Shape Properties (Brentwood) Corp., Shape Properties (BTCR) Corp., Shape Properties (BTCR) LP, Healthcare of Ontario Pension Plan (HOOPP), HOOPP Administration Services Ltd., Brentwood Towncentre GP Inc., Brentwood Town Centre LP, Brentwood Towncentre Investco Corp., Greystone Capital Management Inc. and Greystone Managed Investments Inc.
Rennie claims it began discussions with the defendants back in 2011 about implementing its proprietary marketing platform for a project that became known as “Amazing Brentwood,” encompassing a 28-acre future site of “a master planned community consisting of mixed-use retail, office and residential destination ... intended to accommodate approximately 1.1 million square feet of retail space, 500,000 square feet of office space and 13 highrise residential towers,” the claim states.
Rennie’s plans for the development rolled out in 2013 and, in the meantime, it also began formulating plans for the “City of Lougheed” project, according to the lawsuit. The Lougheed project involved a 40-acre site with plans for 1.4 million square feet of retail space, a million square feet of office space and 23 highrise residential towers.
“Rennie Marketing systems was instrumental in developing this concept and in the planning, branding and market positioning of the project,” the claim states.
The marketing services agreements called for Rennie to receive a performance fee and monthly advances based on a confidential percentage of each residential unit sold. Although Shape, according to the claim, failed to sign the agreement for six months, Rennie allegedly continued to provide its services in good faith, establishing a sales centre staffed by Rennie employees and nearly selling out the Brentwood towers between 2013 and 2015. Shape continued to pay monthly invoices, according to the lawsuit, but requested a fee reduction in April 2015, proposing that Rennie be the exclusive marketing agent for future projects planned by Shape and Greystone.
In January 2016, Shape allegedly “advised Rennie Marketing Systems that it would not be in a position to execute a Marketing Services Agreement” for the Lougheed project until it was signed off by Greystone.
By April 2016, Rennie had sold out the third tower of the Brentwood project, and Shape allegedly requested keeping the sales centre open to transition to marketing the Lougheed towers. However, Shape terminated Rennie’s services in June 2016, deciding to market the projects in-house, despite three towers being “virtually sold out” after years of planning and after the defendants “having learned the Rennie Platform from Rennie Marketing Systems.”
Rennie Marketing Systems seeks $16,464,650 for unpaid performance fees, and damages for breach of contract and unjust enrichment.
The allegations have not been tested or proven in court, and the defendants had not responded to the claim by press time.
