VANCOUVER, BC / ACCESSWIRE / October 27, 2020 / CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF) ("CIBT" or the "Company") is pleased to announce that its newest subsidiary limited partnership, GEC® Marine Gateway Limited Partnership ("Project 11"), has completed the acquisition of two residential rental buildings collectively called GEC® Marine Gateway ("MC1 and MC2") located at the corner of Cambie Street, West 64th Avenue and South West Marine Drive in Vancouver.
The cost of the acquisition is $48.5 million before closing costs. The equity raise was oversubscribed at $19.33 million, with aggregate mortgage financing of $37.15 million. Approximately $34.13 million was advanced at an annual interest rate of 1.88% with a ten-year term. According to the latest appraisal report by an independent and certified appraiser dated August 31st, 2020, the current value for MC1 and MC2 combined is approximately $61 million. The two properties are substantially leased out, generating robust cash-flow returns.
The GEC® portfolio, which includes projects in operation and under development, now comprises 11 locations, 16 buildings and approximately 1.5 million square feet. The portfolio value, including the construction budget for projects under development, is close to $1.5 billion.
"We are excited to add this acquisition to our real estate portfolio, which has been growing exponentially since GEC®'s inception in 2015," said Toby Chu, Chairman, President and CEO of CIBT Education Group. "With a combination of historically low interest rates and a discounted acquisition cost on top of the fact the buildings are fully operational and at near-full capacity, MC1 and MC2 will provide immediate cash flow. Over time, student-centric elements will be added to the two buildings to enhance their value proposition to our existing tenants. Moving forward, we will continue to operate these buildings as rental apartments, increase the density and occupancy rate, and increase revenue, expected to result in significant returns for our shareholders."
About GEC® Marine Gateway - MC1 and MC2:
Constructed in 2016, MC1 and MC2 comprise two concrete, four and six-storey residential buildings. The two buildings have 110 units combined, including townhouses and one to two-bedroom apartments, with a total net rentable square-footage of 60,778 square feet. The site location is less than 100 metres from the Marine Gateway SkyTrain station.
Travel time by the SkyTrain from the Marine Gateway station to the Vancouver International Airport and the City of Richmond, where Sprott Shaw College (Richmond Campus), Kwantlen Polytechnic University and BCIT (Richmond Campus) are located, is only two to three minutes. In comparison, travel time from the Marine Gateway station to Langara College station is only three minutes. Travel time to downtown Vancouver is only 15 minutes. Centrally located in downtown Vancouver includes satellite campuses of the University of British Columbia, Simor Fraser University, British Columbia Institute of Technology, and Vancouver Community College. Also situated in downtown Vancouver are nearly one hundred other private language schools, colleges, universities, Sprott Shaw College and Sprott Shaw Language College.
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 47 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. CIBT offers over 150 educational programs in healthcare, business management, e-commerce, hotel management, and language training through these schools. The total annual enrollment for the group in 2019 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. Under the GEC® brand, Global Holdings 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$1.5 billion.
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.
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 that MC1 and MC2 will provide immediate cash flow, and that over time the Company will increase revenue from MC1 and MC2 which will result in significant returns for its shareholders. 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 applicable limited partnerships in which the projects are held to raise further funds as they are needed. 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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