CIBT Increases Ownership Interest in Downtown Vancouver GEC® Project
Vancouver, B.C. March 19th, 2018 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company”) is pleased to report that pursuant to the Company’s news release of January 24th, 2018, it has completed the buy-out of the former majority owner of the limited partnership that owned one of the GEC® branded downtown Vancouver properties (the “Project”). As a result of a contemporaneous transaction, CIBT increased its ownership interest, from 20% to 47%, in this GEC® branded project.
Total transaction value is approximately $57 million including closing costs, commision and professional fees. CIBT subsidiaries are guarantors/covenantors for debt totaling $40 million in these transactions. As of October 12th, 2017, the value of this property was appraised at $65.92 million. It will continue to operate under the GEC® brand and management.
“This transaction has proven our business model – as one of the largest private colleges in Canada complemented by a fully integrated student housing education business – can create tremendous synergy, ” commented Toby Chu, President, CEO, and Chairman of CIBT Education Group. “The original limited partners in this project earned over a 130% return on invested capital within 27 months and exited successfully. CIBT also benefited from this transaction significantly by increasing its limited partnership interest from 20% to 47%. In addition, CIBT earned a profit of approximately $7 million from the exit transaction, and a structuring fee of $2.4 million for organizing the new limited partnership’s entry transaction.”
About CIBT Education Group:
CIBT Education Group Inc. is one of the largest education and student housing investment companies in Canada focused on the global education market since 1994. Listed on the Toronto Stock Exchange and U.S OTCQX International, CIBT owns business and language colleges, student housing properties, recruitment centres and corporate offices at 43 locations in Canada and abroad. Total annual enrollment for the group exceeds 15,000 students. Its education providers include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College and CIBT School of Business. Through these schools, CIBT offers business and management programs in healthcare, hotel management, language training, and over 150 career, language and vocational programs. CIBT’s property investments are held by Global Education City Holdings Inc., an investment holding and management company focused on developing education related real estate such as student hotels, serviced apartments and education super centres totalling over $600 million. CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). GEA recruits international students for many elite kindergartens, primary and secondary schools, colleges and universities in North America. Irix Design is a leading design and advertising company based in Vancouver, Canada. Visit us online and watch our corporate video at www.cibt.net.
Chairman, President and Chief Executive Officer
CIBT Education Group Inc.
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