CIBT Provides Update on its Portfolio of Academic Assets and Real Estate Investments
Vancouver, B.C., September 9th, 2021 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company“) is pleased to provide the following updates on its portfolio of academic assets and real estate investments.
Overview of CIBT’s Portfolio of Academic Assets:
- College Enrollments: Sprott Shaw College and Sprott Shaw Language College have seen a steady increase in registrations and enrollments for the fall 2021 and spring 2022 semesters as Canada re-opens its borders for international students. Most domestic students are also returning to campus across the province, contributing a steady volume of rental tenants to GEC® rental properties.
- GEC Education Mega Center® (“EMC”): EMC received rezoning approval on February 21st, 2021(1). The Company’s subsidiary, Global Education City Holdings Inc. (“Global Holdings“), will be submitting the development and building permit applications in the coming weeks. The design and technical drawings are nearly complete and will be ready for submission shortly. The total construction budget, including land cost, is $300 million.
- GEC® King Edward: Construction of GEC® King Edward started in January 2021. The Company expects construction to be completed by the summer of 2022, in time for the fall 2022 school semester, adding 180 beds and 46,000 gross buildable square feet to the portfolio. The total construction budget, including land cost, is $44 million.
- Other Operational GEC® Properties: Since the gradual re-opening of the economy and Canada’s borders, the occupancy rate has reached 90% to 100% at most GEC® locations. Additionally, rental rates have returned to their February 2020 pre-COVID levels at most properties.
- CBRE Sales Transaction: Since the marketing launch on May 25th, 2021(2), Global Holdings has processed 31 potential buyer due diligence requests and has received ten written offers to purchase a portion of or the entire portfolio of the GEC® branded operational properties offered for sale. These offers range from the purchase of one hotel to all of the offered GEC® branded rental apartments and five parcels of land at the rezoning phase. Global Holdings has accepted one offer for the purchase of two buildings and continues to negotiate the valuation of four other buildings and five parcels of land.
- New projects under review: A proposal to purchase a parcel of land on the Cambie Street corridor submitted by Global Holdings is pending the seller’s acceptance. In addition, Global Holdings is in discussion with prospective partners to explore the opportunity to acquire ownership in a substantial project in Metro Vancouver, B.C. Negotiations on these initiatives are underway and will continue in the coming weeks.
Toby Chu, Chairman and CEO of CIBT Education Group Inc. commented “A recent news article on the Dailyhive online news source described a massive development plan for the Marine Gateway area in Vancouver located across the street from the GEC® Marine Gateway site that was purchased in October 2020. This latest proposed expansion in the Marine Gateway area will add more value and popularity to a high-demand nighbourhood. News link: https://dailyhive.com/vancouver/marine-gateway-2-pci-developments-8530-cambie-street-vancouver
“As part of Global Holdings’ strategic plans, at least three other GEC® properties are located within one city block from other major developments in Metro Vancouver, including the following:
- GEC® Oakridge will be located across from the Oakridge development project dubbed as the largest development in Vancouver’s history (https://dailyhive.com/vancouver/oakridge-centre-redevelopment-vancouver-2018-design )
- Global Education City® (Richmond) will be located across the street from the proposed Lansdowne Mall development of 10,000 new homes ( https://dailyhive.com/vancouver/lansdowne-centre-mall-redevelopment-approved-richmond )
- GEC Education Mega Center® will be located across the street from the proposed massive SFU expansion and office towers development at the Central Business District of Surrey, B.C. (https://dailyhive.com/vancouver/surrey-central-station-centre-block-redevelopment )
Our fiscal 2022 target is to monetize 0.27 million square feet of our operating properties, continue to develop and construct 1.14 million square feet including the Education Mega Center® in Surrey, and potentially replenish our inventory with approximately 1.1 million square feet of new properties. The expansion of our real estate portfolio remains a primary objective for us as we look to accelerate the growth of CIBT moving forward.”
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 45 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.
CIBT’s real estate subsidiary, Global Education City Holdings Inc. (“Global Holdings“), develops and manages academic assets such as student-centric rental apartments, corporate housing, hotel and education super-centres. Since 2015, Global Holdings has provided B2B accommodation service to 90 schools in Metro Vancouver and B2C direct registration of 6,000 students from 71 countries. The GEC® branded portfolio comprises 10 projects, 15 buildings spanning nearly 1.5 million square feet, including operational, under-construction and development properties.
CIBT also owns Irix Design Group Inc. (“Irix Design“). Irix Design is a leading design and advertising company that 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 319 or | Email: email@example.com
Some statements in this news release contain forward-looking information (the “forward-looking statements“) about CIBT and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, the statement that development and building permit applications for Education Mega Center® will be submitted in the coming weeks, that construction of GEC® King Edward is expected to be completed by the summer of 2022, and that the fiscal 2022 target is to monetize 0.27 million square feet of operating properties, continue to develop and construct 1.14 million square feet including the Education Mega Center® in Surrey, and potentially replenish inventory with approximately 1.1 million square feet of new properties. Forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the “Risks”) 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 the Company’s ability to negotiate and close sale transactions relating to current GEC® locations, the Company’s ability to identify and acquire properties for new GEC® locations and to fund the acquisition and construction costs of such new locations, the Company’s ability to obtain all required municipal approvals in a timely manner, and usual construction risks. 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. If CIBT updates any forward-looking statement(s), no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements.