VANCOUVER, BC / ACCESSWIRE / September 1, 2020 / CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF) ("CIBT" or the "Company") is pleased to report that its subsidiary, GEC Oakridge Limited Partnership, received a $3.9 million investment for the GEC® Oakridge project from an institutional investor last month. The total subscription funds received by this subsidiary to date, including this latest subscription, is $19.66 million. The rezoning application for this project is progressing according to schedule. The planning department is expecting to submit our application for council approval in the coming weeks.
GEC Oakridge Limited Partnership purchased three parcels of land in February 2020. The site is located near the intersection of West 42nd Avenue and Cambie Street, a central area of Vancouver. The site is close to multiple education institutions, 250 feet from the Oakridge subway station, and within five subway stops to downtown Vancouver where numerous language schools, trade schools, colleges and universities are located.
The Company also reports that GEC King Edward II Limited Partnership received a $1 million subscription for the GEC® King Edward project. The GEC® King Edward project is expecting to receive all required construction permits in the near future and begin construction this month. The construction period will take approximately 18 months, and, upon completion, this project will add 180 beds to the GEC® portfolio. The total annual revenue to be generated from this project is expected to be approximately $3.3 million.
"Our vision to become Canada's leading education real estate company has remained solid, and by providing students and residents of metro Vancouver world-leading housing facilities, we can provide a solution to the rental shortage crisis in Vancouver," said Toby Chu, Chairman and CEO of CIBT Education Group. "Despite the global pandemic slowing down the economy, the GEC® properties continue to grow and appreciate in value, and we will continue to seek opportunities to acquire additional properties and expand the GEC® portfolio at attractive prices."
About CIBT Education Group:
CIBT Education Group Inc. is one of the largest education and student housing investment companies in Canada focused on the domestic and the global education market since 1994. CIBT owns business and language colleges, student-centric rental apartments, recruitment centres and corporate offices at 45 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College and CIBT School of Business. Through these schools, CIBT offers over 150 educational programs in healthcare, business management, e-commerce, hotel management and language training. The total annual enrollment for the group exceeds 12,000 students. CIBT owns Global Education City Holdings Inc. ("Global Holdings"), an investment holding and development company focused on education-related real estate such as student-centric rental apartments, hotels and education super-centres. Global Holdings, under the GEC® brand, provides accommodation service to 72 schools in Metro Vancouver, serving 1,500 students from 77 countries. The total portfolio and development budget under the GEC® brand exceeds C$1.4 billion. 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.
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, the projected values of GEC® properties, and the expected annual revenue to be generated from the GEC® King Edward project is based on the number of beds available multiply the current rental rate. 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, the ability of the relevant limited partnerships to raise further funds as they are needed, and a reduction in the occupancy rate or the expected rental rate for accommodations at GEC® King Edward. 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.
SOURCE: CIBT Education Group Inc.
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