CIBT Subsidiary Expands Student Housing Portfolio to Burnaby Heights
|December 10th, 2015: CIBT Education Group Inc. (TSX: MBA; OTCQX International: MBAIF) (“CIBT”) ”) is pleased to announce that Global Education City Holdings Inc. (“GEC Holdings”), a wholly owned subsidiary of CIBT, has signed a Purchase and Sale Agreement (“Agreement”) with a Vancouver developer through a recently formed limited partnership (the “LP”). The agreement provides for the LP to acquire a four-storey condominium project (“GEC Burnaby Heights”) that is under construction in North Burnaby. The location of GEC Burnaby Heights is in close proximity to Simon Fraser University, Capilano University, British Columbia Institute of Technology and Sprott Shaw College East Vancouver Campus. Substantial student populations, both domestic and international, are enrolled at these institutions. The acquisition price for this project is approximately $21 million inclusive of leasehold improvements, fixtures and serviced apartment furnishings. GEC Holdings will be paid $1.5 million for structuring and managing the development of this project. CIBT plans to use the fees earned to acquire 25% ownership of the LP units. In addition, a subsidiary of GEC will be the General Partner for this project, and an affiliate of GEC Holdings will provide management services for 20 years.
“We are very pleased with GEC Holdings rapidly growing student housing portfolio. This latest property acquisition increases the student housing portfolio under the GEC brand to approximately $156 million in assets, with 1,024 student beds undergoing development or under management since GEC’s inception 19 months ago,” commented Toby Chu, President and CEO, Vice Chairman of CIBT. “I am also very pleased to report that since GEC Holdings assumed management of GEC Granville, a 12 storey downtown Vancouver hotel, on November 18th, 2015, this property has peaked 100% occupancy for two nights, with an overall average of over 50% occupancy during the past 3 weeks. We expect to stabilize this property with long term stay students in about 90 days. In addition, GEC Viva Tower located a block from GEC Granville also reported no vacancy. While we are aggressively expanding the GEC branded property portfolio, we remain committed to our business plan and strategy to acquire more education assets in the career college and language school sector to enhance our student housing strategies,” continued Toby Chu.
GEC Burnaby Heights is a strata condominium building with commercial premises on the ground floor, four stories of concrete and wood frame construction and is able to accommodate approximately 84 beds. Close proximity of this property to various educational institutions in the area, and being situated on a major traffic artery, makes it perfect for international students to commute between school, residence and downtown Vancouver. Construction for GEC Burnaby Heights is expected to complete in the summer of 2016, and GEC Holdings plans to take possession and furnish the property for the start of the 2016/17 school year.
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.