CIBT Education Group Provides Corporate Update on GEC Projects
Vancouver, B.C., February 18th, 2020 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company”) is pleased to provide the following update relating to various student housing projects under development that are controlled by CIBT.
“Below, we have highlighted our expansive and growing portfolio of student housing assets currently under development and the projected market value of each,” said Toby Chu, Chairman and CEO of CIBT Education Group. “With our core focus of becoming Canada’s leading education real estate company, we remain committed to acquiring or developing world-leading student housing facilities that not only provide our company with growing and recurring revenues but solve the broader issue of a supply shortage in Greater Vancouver.
“Our existing education business remains an active part of our overall profile and will continue to support us moving forward,” continued Toby Chu. “We have combined two complementary businesses to provide education and available housing to a consistent student base, and to provide investors with a unique model that can be leveraged to increase shareholder value.”
GEC® Global Education City Richmond
- Construction for this project is underway, with excavation having commenced in January 2020
- The completion date is projected to be December 2022
- This project is a 262,000 gross buildable square feet site under the GEC® brand, with one 11-level office tower and one 14-level market rental apartment tower
- The goal is to accommodate up to 10 educational institutions in the office tower, share all the supporting amenities, with market rental apartments immediately next to the office tower designed for students, faculty and staff
- The total capacity is approximately 466 occupants, with a projected value of $252 million upon completion
GEC® King Edward
- Construction for this project is schedued to commence in the spring of 2020
- Rezoning has been approved, and a development permit has been issued
- Excavation and building permit pending
- This project is a five-level concrete and wood-frame market rental apartment
- The total capacity is approximately 193 occupants, with a projected value of approximately $64 million upon completion
- Rezoning application for this project is well underway with an updated design of two office towers and a micro-suite hotel to be operated under the GEC® brand
- The office towers are intended to accommodate schools and educational institutions, while the micro-suite hotel will follow our successful model of GEC® Granville Suites Hotel.
- The total capacity at the micro-suite hotel is approximately 265 occupants. The projected value for the two office towers and the hotel is approximately $247 million upon completion
GEC® Education Mega Center
- Redesign and planning of this project have been submitted to the Surrey City for review and approval with supportive and positive feedbacks
- The new design is a 49-level concrete high rise structure with mixed-uses, including offices for educational institutions, market rental apartments and pre-sale micro-condos
- Located within one block of the Simon Fraser University (Surrey) campus, Kwantlen Polytechnic University (Surrey Central) campus and less than 2 KM from the Sprott Shaw Surrey campus, demand for student rental and related educational use is significant
- This project can accommodate up to 800 occupants (excluding the micro-condo suites), and is estimated to have a projected value of approximately $364 million upon completion
- Acquisition of Lot 1 for the GEC® Oakridge project completed on February 11th, 2020
- Acquisition of Lot 2 and 3 of this project scheduled to close on February 28th, 2020
- The total purchase price for all three lots is $30.3 million
- With rezoning and development costs invested in these three lots, the latest appraisal report shows a current value of approximately $50 million
- GEC Oakridge is a 18-level concrete market-rental apartment with a capacity of 475 occupants, with a projected value of approximately $165 million upon completion
- A non-binding letter of intent has been signed to sell one of the GEC® properties to an institutional buyer which will include a management and master lease agreement for ten years after the closing of the sale. If a binding agreement is signed, the closing date is expected to be in May 2020
- Other GEC® properties including GEC® Viva, GEC® Granville, GEC® Burnaby Heights, and GEC® Pearson are fully operational, and most locations are at near-full capacity
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 45 locations in Canada and abroad. The total annual enrollment for the group exceeds 12,000 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 owns Global Education City Holdings Inc. (“Global Education”), an investment holding and development company focused on developing education related real estate such as student hotels, serviced apartments and education centres. The total portfolio and development budget of projects under Global Education’s GEC® brand is over C$1 billion. The various GEC® properties provide accommodations to over 1,500 students and other tenants. CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). GEA recruits international students on behalf of 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 & 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 plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include (without limitation) statements as to expected construction commencement and completion dates and the projected values of GEC® properties. The forward-looking statements are subject to various risks, uncertainties and other factors that could cause CIBT’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements, including but not limited to usual construction risks, obtaining all necessary regulatory approvals, and the ability of the relevant limited partnerships to raise further funds as they are needed. The projected value of each GEC® property is based on a series of analysis of various factors include (1) the cap rate based on market statistics, (2) current market environment, conditions and sentiment, (3) price per square foot in recent transactions in the neighbouring area, (4) input received from appraisers and real estate professionals, and (5) calculations of pro forma income and expenses for the project. 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.