TORONTO, Nov. 1, 2015 /CNW/ - Park Lawn Company Limited (CSE: PRL) (the "Company" or "Park Lawn") announced today that it has entered into a binding agreement with Mattamy Development Corporation ("Mattamy"). The parties have entered into a joint venture agreement for the development of the Company's property at 57 Linelle Street, Toronto. Mattamy will acquire an 80% interest in the land. 40% of the purchase price will be paid over six months and for the balance of 60% the Company will hold a Vendor take back mortgage for up to four years. Interest is payable on the mortgage at 4.8% per year, with no interest payable for the first 18 months following execution of the agreements.
The Company will retain a 20% interest in the land and has entered into a co-ownership agreement with Mattamy. The co-owners agreement contemplates the development of the land for low rise residential development. Under this agreement Mattamy will be responsible for managing the development of the property, the sale, site servicing and construction of the units. The Company and Mattamy will receive profits from the development to be shared 20% to the Company and 80% to Mattamy. In addition, Park Lawn expects to receive the balance of the land value. Park Lawn could receive total income of approximately $10 million from the project.
About Park Lawn
Park Lawn Company Limited ("the Company") owns a 2.9 acre parcel of land at 57 Linelle Street, Toronto, Ontario and holds a Promissory Note in the amount of $5,096,498 issued by Park Lawn Corporation. The Company also owns the house and land located at 53 Linelle Street, Toronto, Ontario. The property is located immediately adjacent to the 57 Linelle Street property.
About Mattamy Homes
Mattamy Homes is the largest privately owned homebuilder in North America, with operations across the United States and Canada. Mattamy has built and closed more than 65,000 homes in 160 communities. In the United States, the company is represented in eight metropolitan areas – Minneapolis-St. Paul, Charlotte, Phoenix, Tucson, Jacksonville, Orlando, Tampa and Sarasota – and in Canada, those communities stretch across the Greater Toronto Area, as well as in Ottawa, Calgary and Edmonton.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Park Lawn Company Limited
For further information: Frank Mills, President, or Larry Boland, Vice President and Treasurer, Park Lawn Company Limited, Tel: (647) 933-9079, Fax: (416) 512-6076