On May 11, 2026, five statements of claim were filed against both the Elora and Blair House groups owned by Julia Zhang and her JD Development company. Two statements of claim were filed by Century Church, Benton Corp. and Aurelia Innovation Consulting. Rez-One, First Investment Ltd. and Husheng Development Ltd. all submitted claims as well.
The lawsuits concern an alleged fraudulent invoice scheme, but they are still to be tested in court. First Investment Ltd. and its affiliated entities (the Plaintiff entities) invested in three jointly owned real estate development projects.
This injunction was to have Zhang and JD Entities refrain from “This injunction is to have Zhang distributing, misallocating, misusing, misappropriating, withdrawing, transferring or otherwise dissipating any operating income generated by the Blair House and Elora House projects.”
Zhang was recognized as one of Canada’s most powerful women by Women’s Executive Network in 2021. JD Development Group was established in Markham in 2008, with the goal of providing luxury rental housing for students.
JD Development built Blair House and Elora House as part of four residences that are run by Rez-One. Hespeler House and Fergus house are included in that project and have recently been sold.
On Aug.31, 2018, the Xu Entities invested through certain of their investment vehicles (namely, Century Blair, Century Elora, Century Hespeler) an additional $35 million to acquire a 75 per cent equity interest in each of Blair House, Elora House, and Hespeler House, and an additional $6 million as debt financing for the projects,” the Notice of Arbitration states.
The Phillip Street Project — student housing residences in Waterloo, Ontario (Blair House at 256 Phillip Street and Elora House at 250 Phillip Street). The Plaintiff Entities hold a 75 per cent equity interest in these properties.
The Church and Benton Project — an assembly of four land parcels in Kitchener, Ontario (69 Benton Street, 73 Benton Street, 39 Church Street, and 51 Church Street), in which the Plaintiff Entities hold a 49 per cent limited partnership interest. The development was paused in or around September 2024.
The LakeVu Project — a three-tower condominium development in Barrie, Ontario (Buildings A, B, and C at Lakeside Terrace), in which the Plaintiff Entities held an indirect 53 per cent interest. The Plaintiff Entities’ interest has been sold.
“In or around January 2016, the Xu Entities invested $5 million to indirectly acquire a 31.45 per cent equity interest in Fergus House,” which was the first investment by the Xu Entities in the Phillip Street Project, as stated in the Notice of Arbitration.
The minority partner manager of these projects is Zhang, operating through a network of corporate entities known collectively as the “JD Entities.” This development company is based in Markham. The Phillips Street Project is managed by Rez-One Management Corp., an entity controlled by Zhang.
“Key improper payments include approximately $859,365 to Remolife Landscaping (a company owned by Ms. Zhang’s common-law partner), $22,448.89 to Construction One Contracting, and $12,215 to ZO1 Ltd. Remolife’s invoices were grossly inflated, vague, and lacked supporting documentation,” the media backgrounder stated.
Julia Zhang and JD Entities and First Investment Ltd. could not provide a comment due to the lawsuit being in court.
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