CIBT Provides Update regarding one of its GEC Branded Locations
January 13, 2016: CIBT Education Group Inc. (TSX: MBA; OTCQX International: MBAIF) (“CIBT” or the “Company”) wishes to provide an update on one of its GEC projects located in Greater Vancouver, along the city’s subway line and within 5 minutes’ walking distance from the nearest subway station.
On May 12th 2015, CIBT announced the purchase of this property that is under development for $44 million. The Company is pleased to report that construction for this project is well underway, and is scheduled for occupancy by the fall of 2016. This serviced apartment will be able to accommodate over 300 students, equipped with student lounge, activity rooms, fully furnished supported by weekly housekeeping, private tutoring, weekend excursion activities and 24/7 caretaker and security on site. More importantly, this location is within a 5 minutes’ subway ride to the City of Richmond where leading educational institutions such as Kwantlen Polytechnic University, BCIT, Trinity Western University and Sprott Shaw College have campuses. Further, this project is 3 subway (SkyTrain) stations from Vancouver International Airport, within 5 minutes by bus to Langara College, and within 15 minutes of downtown Vancouver via the SkyTrain system where over 100 educational institutions are located.
“We are very pleased to report that this location is one of the largest GEC-branded locations so far, bigger than that of GEC Granville or GEC Viva in terms of student accommodations,” commented Toby Chu, President and Chief Executive Officer, Vice Chairman of CIBT. “We are also pleased to report that the development cost for this location on a per bed basis is the lowest so far as compared to the GEC-branded “purchase & convert” locations. As Vancouver’s red hot real estate market progressed in the past one year since the purchase and sale contract was signed, the cost per buildable square foot for this location has substantially increased in value by approximately $95 per buildable square foot (data based on nearby transaction value on a per buildable square foot basis). This location has a total of 80,000 buildable square feet, representing a value appreciation to the CIBT-led limited partnership of over $7.6 million based on land value alone. We fully expect that after taking possession of this GEC location this Fall, the value for this building will increase further based on a finished construction at a most convenient location, as compared to only land value appreciation at this time.”
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: firstname.lastname@example.org
Some statements in this news release contain forward-looking information (the “forward-looking statements”) about CIBT Education Group Inc. and its future plans. Forward-looking statements are statements that are not historical facts. The forward-looking statements in this news release include, without limitation, the expectation that after taking possession of this GEC location this Fall, the value for this building will increase further based on a finished construction at a most convenient location, as compared to only land value appreciation at this time. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the “Risks”) that could cause CIBT’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, any decrease in land values, as well risks that are typical to the construction industry. Forward-looking statements are based on the beliefs, opinions and expectations of CIBT’s management at the time they are made, and CIBT 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.