CIBT Subsidiary Investment Group Acquires Luxury Hotel in Downtown Vancouver
|January 30th, 2015: CIBT Education Group Inc. (TSX:MBA, OTCQX International: MBAIF) (“CIBT Group”) is pleased to announce that its wholly owned subsidiary, Global Education City Holdings Inc. (“GEC”), has partnered with an investor to jointly acquire Viva Suites Hotel (“Viva”), located at 1311 Howe Street, Vancouver, BC, through a limited partnership. This 17-storey long-stay luxury hotel is located in downtown Vancouver, where over 150 schools ranging from high schools to universities, career colleges and language schools are located. Closing of the transaction occurred earlier today. Total project value including purchase price and renovation cost is approximately $37 million. Global Education City Management Corp., a wholly owned subsidiary of CIBT Group, has entered into a twenty year management agreement for Viva.
GEC plans to convert this luxury hotel into an education and technology worker centric serviced apartments and long stay hotel. Post renovation, the building will accommodate up to 230 beds fully equipped with ensuite kitchens, fitness centre, electronic library, TV lounge, and free shuttle bus service to major intersections of downtown Vancouver during morning rush hour and after school pickup. In addition, all standard services pioneered by CIBT Group such as international student airport landing service, private tutoring, daily hot meal service, weekend excursion activities, IT support, academic counseling, and shuttle bus service will be available at Viva, along with other services.
“This latest acquisition marks the 3rd investment by GEC totaling C$113 million within 7 months with another 9 projects under negotiation and development” commented by Toby Chu, President and Chief Executive Officer, Vice Chairman of CIBT Group. “Viva Suites Hotel is fully operational at this time and available for immediate occupancy. We expect that the conversion time for selected suites will take six months, in time for the 2015 September enrollment so that international students can check-in after their summer holiday.”
Mr. Chu added, “Our plans for 2015 are to continue our property acquisitions steadily with a goal of adding 1 – 2 properties per quarter, populate all of our education centric properties with students from Canada and abroad, and to provide corporate housing to technology companies establishing development centres in Vancouver. CIBT Headquarters will continue to seek acquisition and expansion opportunities for our education subsidiaries:
These subsidiaries and their academic partners will generate substantial student-housing demands for Global Education City’s serviced apartments and hotels. While our business and assets are growing rapidly, CIBT Group intends to buy back our shares from the open market for cancellation to reduce the total number of issued and outstanding shares which enhances shareholder value at large.”
About Viva Suites Hotel & Viva Tower:
Located at the corner of Howe and Drake streets in downtown Vancouver, Viva Suites Hotel is currently a multi-functional building made up of commercial retail, office and fully furnished residential suites available for daily, weekly, monthly or yearly rental.
The Viva Suites’ residents enjoy views of North Vancouver’s mountain peaks in the backdrop and False Creek’s marinas below in Downtown Vancouver. On top of the convenience to reach over 150 schools in Downtown within a 10-minute radius, the centralized location also exposes its residents to Vancouver’s fine dining and entertainment. The luxuriously furnished suites match the class of hotel, comfort of home, and convenience of dormitory with glass showers and soaking tubs, granite floors and marble countertops, and full kitchen and laundry appliances.
As general amenities, Viva Suites offers a 1,100 sq. ft. weight room, fully-equipped lounges, weekly housekeeping, and secured underground parking. Furthermore, a complete Viva Tower Business Centre is offered to cater to all academic and business needs – fax, print, photocopy, meeting facilities, and free wireless internet extends to every suite. The Viva Suites fulfills the living, academic, and business needs of students and business professionals.
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 centres enrolling over 7,000 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 http://www.cibt.net.
For more information contact:
Vice-Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact:1-604-871-9909 extension 318 | Email: email@example.com
|FORWARD LOOKING STATEMENTS:
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 (collectively, “Risks”) 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 as to the expected conversion time for Viva, these Risks include uncertainties and delays which potentially arise in all commercial construction projects. With respect to the statement in this news release as to the anticipated rate of new acquisitions, these Risks include, without limitation, the ability to identify suitable properties, the ability of the applicable limited partnership or other selected investment vehicle to finance and close the purchase of identified locations in a timely manner or at all, and uncertainties which potentially arise in all construction projects. Forward-looking statements are based on the beliefs, opinions and expectations of CIBT Group’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, except as may be required by law