Park Lawn Company Limited announced that it has completed the transaction with Mattamy Development Corporation. The parties have entered into a joint venture agreement for the development of the company’s property at 57 Linelle Street, Toronto.
Mattamy acquired an 80 per cent interest in the land for $8.2 million. 30 per cent of the purchase price was paid on closing with an additional 10 per cent payable in 120 days. For the balance of 60 per cent the company has taken back a mortgage for up to four years. Interest is payable on the mortgage at 4.8 per cent per year, with no interest payable until July 2017.
The company has retained a 20 per cent 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 approval process, site servicing and sale and construction of the units. The company and Mattamy will split profits from the development with 20 per cent going to the company and 80 per cent to Mattamy. Park Lawn could receive total net income of approximately $10 million from the project.
“We are delighted to welcome Mattamy Homes as our development partner in this exciting project,” said Frank Mills, President.