CIBT Announces Subsidiary’s Plan to Monetize Six GEC Branded Buildings
Vancouver, B.C., April 19, 2021 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company“) is pleased to announce the signing of an exclusive agency agreement between their wholly-owned subsidiary, Global Education City Holdings Inc. (“Global Holdings”), and CBRE Limited (“CBRE”), a leading Canadian real estate brokerage and the top-ranked firm for commercial real estate investment sales globally, to exclusively list for sale six highly desirable GEC® rental buildings located in Metro Vancouver, BC.
Under the terms of the agreement, CBRE’s International Markets Team & National Apartment Group will identify institutional and private buyers across Canada, the United States and globally and facilitate a competitive sales process to maximize value for the assets. The offering represents a highly desirable opportunity to acquire a portfolio of 413 units in core downtown and westside transit-oriented locations. Please contact CIBT’s representatives at CBRE for more information regarding the offering process.
“Since 2015, the Global Holdings real estate division has grown to 10 projects with 16 buildings, of which 7 buildings are operational under the GEC® brand and 9 buildings are under construction or in the development phase. Our real estate portfolio (upon completion of construction) is estimated to be worth more than $1.5 billion,” says Toby Chu, Chairman, President and Chief Executive Officer of CIBT. “After we monetize the value of the six buildings marketed by CBRE, we will focus our efforts on our projects under development, which include:
- GEC® King Edward in Vancouver, a 46,000 square foot rental apartment under construction, and GEC Education Super Center® in Richmond, which is comprised of one office tower and one rental tower, with a projected aggregate market value of $314 million upon completion;
- GEC® Cyber City, which will be comprised of two office towers and a micro-suite hotel to be built in Richmond, expecting to finalize its rezoning process this year;
- Overseeing the construction of Education Mega Center® in Surrey, one of our flagship projects, a 410,000 square foot, 49-storey tower with a construction budget of $270 million; and
- GEC® Oakridge, an 18-storey, 120,000 square foot rental tower with a construction budget of $106 million. These two buildings will start construction in 2021 and 2022, respectively.”
Toby Chu added, “During the past seven months, Vancouver’s booming real estate market set new records of transaction volume and price increases. We plan to ride this momentum, complete the sale of 270,000 square feet, and use the proceeds to increase CIBT’s ownership in the 1.14 million square feet under construction. Additionally, we will continue to seek under-valued opportunities to purchase and convert existing buildings, stabilize the income and strive to generate greater returns through the operation of the properties as set out in our business model.”
Global Holdings’ business model:
- We identify properties suitable for development or convert existing buildings into GEC®-branded buildings.
- We oversee the re-design of the properties to become student-centric rental apartments or hotels with high density using ‘smart’ furniture and space-saving designs.
- We add value by providing amenities and services such as fibre-optic internet, telemedicine, weekly housekeeping, on-site caretakers, and stringent security.
- We draw upon students from the Company’s network of 29 corporate-owned schools, 72 school-partners in Metro Vancouver, and 2,500 education sector agents worldwide, thus stabilizing the rental income to fill a large number of the beds at the properties.
- We generate above market rental returns through the operation of the properties.
About CIBT Education Group:
CIBT is one of Canada’s largest education services and academic real estate companies. With a global presence since 1994, CIBT employs nearly 600 staff at 46 business locations and operates a global network of 2,500 recruitment agents. In 2020, the group provided education, student recruitments and accommodation services to over 11,000 students. Its real estate portfolio, including operating assets and development budget, exceeds $1.5 billion.
CIBT’s education subsidiaries include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College Career Campus, CIBT School of Business and Global Education Alliance. These subsidiaries offer over 150 accredited educational programs in healthcare, business, e-commerce, cyber-security, hotel management, language training and recruitment services at 29 locations in Canada and abroad.
CBRE Group, Inc. is the world’s largest commercial real estate services and investment firm, with 2020 revenues of $23.8 billion and more than 100,000 employees (excluding affiliate offices). CBRE is the top-ranked firm for commercial real estate investment sales globally for the tenth consecutive year, according to Real Capital Analytics (RCA). CBRE has been included on the Fortune 500 since 2008, ranking #128 in 2020. It also has been voted the industry’s top brand by the Lipsey Company for 20 consecutive years, and has been named one of Fortune’s “Most Admired Companies” for nine years in a row, including being ranked number one in the real estate sector in 2021, for the third consecutive year. Its shares trade on the New York Stock Exchange under the symbol “CBRE.”
About Global Holdings:
Global Holdings, CIBT’s real estate subsidiary, develops and manages academic assets such as student-centric rental apartments, corporate housing, hotel and education super-centres. Under the GEC® brand, Global Holdings provides B2B accommodation service to 72 schools in Metro Vancouver and B2C service to students from 77 countries. The GEC® branded portfolio, including properties that are operational and those under-construction or development, comprises 11 projects, 16 buildings, spanning over 1.5 million square feet.
CIBT also owns Irix Design Group Inc. (“Irix Design“). Irix Design is a leading design and advertising company services over one hundred corporate clients including CIBT. Visit us online 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“). Forward looking statements are statements that are not historical facts and in this news release include, without limitation, statements as to the Company’s plans under its business model, and the expected sale of six GEC® rental properties (the “Offered Properties”) and the anticipated gross proceeds therefrom. 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 of CBRE to attract potential buyers for the Offered Properties and to negotiate a purchase price at or above the Company’s expectation, the ability of the Company’s real estate limited partnerships to raise equity investment and secure other required funding to build projects, usual construction risks, the ability to obtain all required municipal approvals and within the time expected by management, and the ability to fully rent the completed buildings. 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.