CIBT Subsidiary Expands its Student Housing Portfolio in Downtown Vancouver
|Nov 19th, 2015: CIBT Education Group Inc. (TSX: MBA; OTCQX International: MBAIF) (“CIBT”) is pleased to announce that a wholly owned subsidiary of CIBT Education Group Inc. (“GEC Holdings”) has assumed management of a second downtown Vancouver hotel located at 718 Drake Street (corner of Granville Street and Drake Street). The hotel, formerly known as Best Western Plus Downtown Vancouver, will now operate under the name GEC Granville Suites (“GEC Granville”). The plan is for GEC Holdings to hold an equity interest in the investment vehicle in addition to managing the hotel for 10 years with an option to renew for another 10 years. CIBT received a structuring fee of $1.8 million for arranging this transaction.
“We continue to make significant progress on increasing the size of our student housing portfolio by the closing of this acquisition,” commented Toby Chu, President, CEO, and Vice Chairman of CIBT. “As our GEC Viva Tower located a block from GEC Granville has no more vacancy, this latest addition to our portfolio is expected to be in high demand for the upcoming year. This latest property acquisition increases the student housing portfolio under the GEC brand to approximately $135 million in assets, with 940 student beds undergoing development or under management since GEC’s inception 18 months ago. This is consistent with our growth trajectory and portfolio target under the GEC brand of $1 billion dollars and 10,000 beds within 5 years.”
“While we are aggressively expanding our property portfolio, we remain committed to our business plan and strategy to acquire more schools in the career college and language school sector to enhance our education themed real estate strategies,” continued Toby Chu.
GEC Granville is a 19 year old full service hotel with 222 beds, a White Spot Restaurant, conference room facility, jacuzzi, fitness center and other hotel amenities. This hotel facility will be enhanced to adopt the GEC operating model by adding double Murphy beds, student services such as landing service, weekend excursions, private tutoring, 24/7 caretaker, overnight security guard and weekly housekeeping. The purchase of this property was completed on November 18th, 2015. Total purchase price was approximately $40 million.
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 owns and operates a network of business, technical and language colleges in North America and Asia. CIBT offers cooperative joint programs in 12 countries with campuses, recruitment offices and training centers 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 offers recognized and approved 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 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 and watch our corporate video at http://cibt.net/about/.
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 number of job openings in B.C. by 2022 in the areas of skilled trades and technical occupations, the Risks include uncertainties as to the actual development of the B.C. economy. 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.