Park Lawn Company Limited announced  that it has entered into a binding agreement with Mattamy Development Corporation for the development of the company’s property at 57 Linelle Street, in Toronto.

Mattamy will acquire an 80 per cent interest in the land. 40 per cent of the purchase price will be paid over six months and for the balance of 60 per cent, the company will hold a vendor take back mortgage for up to four years. Interest is payable on the mortgage at 4.8 per cent per year, with no interest payable for the first 18 months following execution of the agreements.

The company will retain 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 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 per cent to the company and 80 per cent 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.