CIBT Reports Completion of GEC Education Super Center Land Purchase for $17 Million
Vancouver, B.C., October 3rd, 2016 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT”) is pleased to announce the completion of the purchase of five parcels of lands located in Metro Vancouver for $17 million, with an option to purchase a sixth adjacent parcel from another owner upon development permit approval. Total square footage of the five parcels is approximately 80,000 square feet. The total proposed buildable square footage, including the sixth parcel, is expected to be approximately 330,000 square feet, subject to City approval. This site will become the future home of GEC Education Super Center with an estimated construction and furnishing budget of $183 million.
“We are very pleased with the development of the Global Education City student housing portfolio which, before today’s announcement and the recently announced GEC Education Mega Center project, was valued at over $200 million,” commented Toby Chu, President, CEO and Chairman of CIBT Education Group. “With the addition of the GEC Education Mega Center and GEC Education Super Center projects, the aggregate total portfolio size for all completed and planned projects now exceeds $610 million.”
Mr. Chu further stated, “GEC Education Super Center will adopt the same business model as for GEC Education Mega Center. The vision for GEC Education Super Center is to provide affordable, safe, and convenient accommodations to students from across the province as well as international students from around the world. The site is located within a one minute walk from the nearest SkyTrain (subway) station, giving residents easy access to downtown Vancouver and to Vancouver International Airport. Housing a variety of schools as well as satellite campuses of education institutions, GEC Education Super Center will provide a convenient and cost effective platform to both educators and students. Once built, GEC Education Super Center will become another source of significant revenue for CIBT, adding tremendous value for our shareholders. CIBT will earn a structuring fee that it intends to use to acquire a 20% equity ownership in the limited partnership that owns GEC Education Super Center. CIBT may also increase its cash investment in this project in order to increase its equity ownership in the limited partnership and capitalize on the anticipated future appreciation of the finished project. ”
About GEC Education Super Center:
Subject to City planning approval, the proposed GEC Education Super Center is expected to have two to three 11-16 storey high rise towers and the following features:
- The site is located near Vancouver International Airport, about 500 feet from a SkyTrain station, and the site provides easy access to various amenities and shopping centers in the area.
- It is proposed that the first tower be filled with schools and education institutions.
- The large proposed podium at the base of the building will host various student amenities such as: a food fair, student lounges, computer centers, electronic library, conference rooms, and office space for education consultants and other industry related services.
- The second proposed tower will be designed to accommodate short term and long term stay guests. Planned amenities include: meeting rooms, shared commercial size kitchen, social lounges; planned services include: housekeeping, concierge and onsite security personnel. A portion of the building will also be able to enjoy water views of the Fraser River. Guests will be able to enjoy a safe, convenient and comfortable place to stay at an affordable price.
- The entire project will have the following approximate specifications: 330,000 square feet, total land building cost of $183 million, and a maximum capacity of approximately 750 guests.
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 Education Holdings”). GEA recruits international students for many elite kindergarten, primary, secondary schools and universities in North America. Global Education Holdings 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/
President, CEO and Chairman
CIBT Education Group Inc
Investor Relations Contact: 1-604-871-9909 extension 318 or | 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 and in this news release include the statement as to the expected size and features of GEC Education Super Center and that significant management income and capital gains are anticipated to be received by CIBT. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, “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, the ability to raise equity investment and secure other required funding to acquire the project, usual construction risks, the ability to obtain all required municipal approvals, and future real estate appreciation, if any. 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.