CIBT Accepts Additional Investment into Recently Acquired $32.4M Project
June 18th , 2014: CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) and its subsidiaries (collectively, “CIBT Group”) are pleased to report the participation of an overseas investor in CIBT Group’s $32.4 million serviced apartments project (the “Project”) that was announced on June 2nd 2014. As a result of the investment, CIBT Group will hold a minority interest in the Project. In addition, CIBT Group will be paid a fee of $1.161 million for developing and structuring the Project.
This is the second project in which CIBT Group has attracted an investment partner within a 30 day period (see CIBT Group’s news release of May 29th 2014 for details of the investment in the first project). Total structuring fees for the two projects reached $2.65 million.
In addition, CIBT Group has been appointed as manager of the Project for a term of twenty years and will be paid, as a management fee, a portion of the distributable cash from operations generated from the Project. The services to be provided by CIBT Group as manager of the Project will include the following:
- Recruit international students to reside in the serviced apartments
- Provide landing services, city orientation, settlement and student support services for those international students newly arrived to Vancouver
- Manage the day-to-day operations of the Project including financial management and collection of rents
- Provide various tutoring services including language and academic programs
- Coordinate after school extracurricular activities and sightseeing tours for those international students residing at the serviced apartments
- Provide hotel management Interns to work at the student apartments at reduced cost while obtaining hotel management experience
“We are pleased to report that investment in this second of a planned series of education themed real estate projects by CIBT Group was again sold-out within a short time frame,” commented by Toby Chu, President, Chief Executive Officer and Vice Chairman of CIBT Education Group Inc. “The company continues to seek out strategic locations to expand our portfolio of education related serviced apartments and hotel projects throughout the Lower Mainland. We are planning to acquire additional properties by partnering with accredited domestic and overseas investors with a view to establishing as many footprints as possible throughout the Lower Mainland. In addition to serviced apartments and short-stay hotels for students, CIBT is seeing a substantial wave of affordable housing needs for technology workers migrating from across Canada and the United States to Vancouver as major software development companies such as Microsoft, Amazon and Sony’s Imageworks are establishing their development centres in Vancouver thereby creating tens of thousands of technology related jobs. A BC Stats report indicated that revenue for British Columbia’s tech sector rose 3.5% in 2012 to $23.2 billion. Our school subsidiaries and student housing subsidiaries will be ready to accept this additional wave of technology students and housing demand growth. Such growth is expected to reach 200,000 foreign students residing in the Lower Mainland in the next 8 years.”
About CIBT Education Group:
CIBT Education Group Inc. is an education management company focused on the global education market since 1994. Listed in Canada on the Toronto Stock Exchange and in the U.S on the OTCQX International, CIBT Group owns and operates a network of business, technical and language colleges in North America and Asia. CIBT Group offers cooperative joint programs in 12 countries with campuses, recruitment offices and training centers enrolling over 6,500 students annually. Its education business is operated through Sprott Shaw College (established in 1903), Acsenda School of Management, CIBT School of Business China, and Global Education Alliance Recruitment Centers in China and other overseas countries. Through these subsidiaries, CIBT Group offers Western and Chinese accredited business and management degrees, programs in college preparation, healthcare, hotel management and tourism, English language training, English Teacher Certifications, junior and high school preparation programs for overseas study, and other career/vocational training. CIBT Group also owns Irix Design Group, a leading design and advertising company based in Vancouver, Canada, Global Education Alliance (“GEA”) and Global Education City Holdings Inc (“GEC”). GEA recruits international students for many elite kindergarten, primary, secondary schools and universities in North America. GEC is an investment holding and management company with a special focus on education related real estate projects in Canada. Visit us online at www.cibt.net.
For more information contact:
Vice-Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact:1-604-871-9909 extension 318 or | Email: email@example.com
Some statements in this news release contain forward-looking information (the “forward-looking statements”) about CIBT Group and its future plans. Forward-looking statements are statements that are not historical facts. The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause the company’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. With respect to the statement in this news release that CIBT Group is planning to acquire additional properties by partnering with domestic and overseas investors, these risks, uncertainties and other factors include, without limitation, uncertainty as to CIBT Group’s ability to identify additional suitable locations, to negotiate the purchase of identified properties on favourable terms or at all, and to negotiate the investment in any additional projects on favourable terms or at all Forward-looking statements are based on the beliefs, opinions and expectations of the company’s management at the time they are made, and CIBT Group does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.