CIBT Reports Completion of Purchase of GEC Burnaby Heights Property for $17.75 Million
Vancouver, B.C., November 2nd 2016 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company”) is pleased to announce the completion of the purchase of GEC Burnaby Heights, a residential and commercial building located in Burnaby, B.C., for $17.75 million before furniture, fixtures and equipment. The Company’s wholly-owned subsidiary, Global Education City Management Corp. (“GEC Management”), has taken possession of the building as of October 31st, 2016 on behalf of its beneficial owner, GEC Burnaby Heights Limited Partnership. Appraised value of this building as of May 2016 was $24.2 million.
GEC Burnaby Heights, the newest Global Education City (“GEC”) project, is a building with 30 residential units and commercial premises on the ground floor. It is composed of four stories of concrete and wood frame construction. 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, as well as other young adults in the area. Similar to other GEC properties, controlled access, 24/7 video surveillance of all entrances and public areas, centrally monitored smoke detectors, smart locks, as well as a security guard and live-in caretakers are just some of the safety features at GEC Burnaby Heights.
A strong emphasis has been placed on comfort and cleanliness of the building. Weekly housekeeping for all suites, furniture, television, beds and bedding, towels, Wi-Fi and many other services and amenities are provided free of charge. Weekend excursion activities for students staying at any GEC property in Metro Vancouver are also offered as an option. Photos of GEC Burnaby Heights are available at www.studenthotel.ca.
“We are very pleased with the booking rate of this latest GEC project in Burnaby, B.C.”, commented Toby Chu, Chairman, President and CEO of CIBT. “GEC Burnaby Heights has been nearly fully booked since the beginning of August, three months prior to completion. Students from nearby colleges and universities have started moving into this new property with no further vacancy at this time. Approximately $24 million of assets with a corresponding mortgage liability of approximately $16.3 million will be reflected in CIBT’s Q1 financial statements.”
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: 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 and in this news release includes the statement as to the anticipated rental income to be generated from GEC Burnaby Heights. 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 maintain occupancy of the building at near capacity. 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.