Lawsuit Between Westbank and Former Executive Sheds Light on Financial Pressures Facing Major Vancouver Developments

A lawsuit filed by a former executive at Vancouver-based developer Westbank Project Corp. is drawing attention to the financial pressures facing some of the city’s largest real estate projects.

In December, Rhiannon Mabberley, Westbank’s former vice-president of development, filed a civil claim alleging breach of contract after leaving the company in early 2025. She claims Westbank owes her approximately $1.2 million under the terms of her employment agreement.

Westbank disputes the claim. In its response, the company states that the compensation Mabberley seeks was tied to project profits that were not realized.

While Westbank’s formal reply does not elaborate on why profit targets were not met, an affidavit filed by Mabberley includes what she describes as a text message from Westbank founder Ian Gillespie, offering insight into internal financial concerns.

The authenticity of the alleged message has not been tested in court, and Westbank declined to comment on its contents, stating that the matter remains before the courts.

Major projects referenced

According to the affidavit, the alleged September message from Gillespie references several prominent Vancouver developments and describes financial strain.

Among them:

• Sen̓áḵw, the large residential complex at the foot of the Burrard Bridge, originally a 50/50 partnership with the Squamish Nation before Westbank sold its stake to Ontario Pension Trust. The text suggests a reduced valuation compared to prior expectations.

• The Alberni and Butterfly towers in downtown Vancouver, where the message reportedly cites unsold units, cost overruns, and slower-than-expected closings.

• Oakridge Park, a massive redevelopment project launched in 2019, described in the message as significantly behind schedule.

The message, as outlined in the affidavit, concludes with Gillespie offering Mabberley $200,000 to resolve the matter, stating that the situation reflects “the reality of the industry these days.”

Broader industry challenges

Real estate analysts say the issues referenced in the lawsuit align with broader market conditions affecting developers across the region.

Howard Chai, an independent Vancouver-based real estate journalist, said financial pressures have become increasingly common in recent years.

“Westbank is a prominent developer with high-profile projects, so the scale may be different,” Chai said. “But challenges like unsold pre-sale units, delayed closings, and liquidity strain are not unique.”

Several Vancouver developers have faced financial headwinds amid higher interest rates, reduced pre-sale demand, construction cost inflation, and tighter lending conditions.

Because many development firms are privately held, detailed financial information is rarely disclosed publicly unless litigation, restructuring, or insolvency proceedings bring it to light.

Chai noted that Westbank’s partnerships with publicly traded real estate investment trusts provide somewhat more visibility than is typical in the sector. Still, he said, the broader question is whether the market has reached a bottom after several turbulent years.

“Covering insolvencies relatively often, it does seem like the pace has slowed somewhat,” he said. “If we’re nearing rock bottom, historically that’s when conditions start to stabilize — but that remains to be seen.”

Legal process ongoing

The civil claim between Mabberley and Westbank has not yet been adjudicated, and the allegations contained in the affidavit remain unproven.

As the case proceeds, it may continue to offer insight into the financial realities behind some of Vancouver’s most ambitious development projects — and the broader pressures shaping the city’s real estate landscape.