TMX group

CALGARY, July 14 /CNW/ - Northern Property advises that its previously
announced plans to provide mezzanine financing for the development of the
Panorama Hills Long Term Care facility in Calgary is now not certain to
proceed.
AgeCare Investments Ltd., the developer for the proposed 275 bed long
term care facility in north-east Calgary, has halted the commencement of
construction for 90 days pursuant to a standstill agreement with Calgary
Health Region. Project construction and development costs are now forecast by
AgeCare to be well in excess of budget.
Northern Property President & CEO Jim Britton noted, "Escalating
construction costs are a serious factor in many construction projects which
are planned or underway in Alberta. While disappointing, it is not entirely
surprising that costs have become an issue for the Panorama Hills project
which was based on construction estimates established several months ago."
In light of the above, AgeCare Investments Ltd. has returned 100% of the
$4.0 million in mezzanine financing which Northern Property had recently
advanced for the development.