CIBT Provides Update on GEC Developments
Vancouver, B.C., Aug 17th, 2016 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company”) is pleased to provide the following updates to the Company’s news release dated December 10th, 2015 concerning GEC Burnaby Heights.
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. The close proximity of this property to various educational institutions as well as to public transit makes it perfect for both domestic and international students to commute between school, residence and downtown Vancouver. The property’s location relative to schools such as Simon Fraser University, Fraser International College, Capilano University, British Columbia Institute of Technology, Sprott Shaw Burnaby Campus and Sprott Shaw College East Vancouver creates a significant opportunity to attract students from these schools.
Construction for GEC Burnaby Heights is expected to be completed by the end of September 2016 and GEC management team will start furnishing the property starting in early September. Extensive efforts have been placed on safety and security for the students. Secured access, 24/7 video surveillance of all entrances and public areas, centrally monitored smoke and access alarm detections, on-site and live-in security guard and caretakers are just a few of the many safety features available at this site. A strong emphasis has been placed on comfort and cleanliness of the building by providing weekly housekeeping for all suites, furniture, television, beds and bedding, towels, WIFI and many other amenities that are provided free of charge. Weekend excursion activities for international students staying at any GEC property in Metro Vancouver are also offered.
The acquisition price for this project is approximately $21 million inclusive of leasehold improvements, fixtures and serviced apartment furnishings. As of August 15th 2016, reservation and inquiries from several nearby universities and colleges have far exceeded the number of beds that are available from this location. We expect to fill all available beds upon possession. Site pictures of GEC Burnaby Heights are available at http://cibt.net/news/gecbh.php.
“We are very pleased with the near completion of GEC Burnaby Heights which will add another 84 beds and a $21 million asset to our portfolio,” commented Toby Chu, President, CEO and Chairman of CIBT. “I am also very pleased to report that the other GEC branded properties, GEC Granville and GEC Viva, have consistently reported 100% occupancy of all available beds. Since the inception of Global Education City Holdings in 2013, the vacancy rate in Metro Vancouver has been declining consistently to less than 0.5% for certain areas while real estate prices have been increasing steadily at a rate of 10 to 20%+. These factors combined with our steady occupancy rate, significant demand and minimal rental supply has driven the property values of our rapidly growing student housing portfolio to new highs quarter after quarter. For the upcoming fiscal 2017, we will take possession of at least two properties having a combined market value totaling over $65 million and our two flagship projects, the Education Super Center and Education Mega Center, will be launched. 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 pipeline, as evidenced by the recent acquisition of Vancouver International College.”
About CIBT Education Group:
CIBT Education Group Inc. is an education and student-housing investment company focused on the global education market since 1994. Listed on the Toronto Stock Exchange and 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 various countries with campuses, offices and training centers at 27 locations enrolling over 8,300 students annually. Its education business is operated through Sprott Shaw College (established in 1903), Vancouver International College and CIBT School of Business. Through these subsidiaries, CIBT offers recognized and approved business and management degrees, programs in college preparation, healthcare, hotel management, English language training, and over 150 career and vocational programs. 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. (“Global Holdings”). GEA recruits international students for many elite kindergarten, primary, secondary schools and universities in North America. Global Education City Holdings Inc. is an investment holding and management company with a special focus on education related real estate projects in Canada such as student hotels, serviced apartments and education super centers. Visit us online at http://www.cibt.net, www.studenthotel.ca, and watch our corporate video at http://cibt.net/about/
Chairman, President and 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 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 expected construction completion date of GEC Burnaby Heights. Forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the “Risks”) that could cause actual results or achievements to differ materially from those expressed in or implied by the forward-looking statements. The Risks include, without limitation, usual construction risks and required municipal approvals. 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.