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.