CIBT Provides Update on GEC Pearson Student Centric Serviced Apartments
July 6, 2017
Vancouver, B.C., July 5th, 2017 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT”) is pleased to report that in a recent appraisal report dated June 20th 2017, GEC Pearson, located on the south side of Vancouver, was appraised at up to $86.1 million, an increase of $42.1 million from our original purchase price of $41.5 million plus FFE (furniture fixture equipment) of $2.5 million in May 2014.
“We are pleased to see that our investment in GEC Pearson has resulted in a substantial gain of $42.1 million over a three-year period for the limited partners and CIBT’s shareholders” commented Toby Chu, Chairman, President and CEO of CIBT. “GEC Pearson was one of our earliest investments into student housing and once completed, this project is expected to provide double digit cash on cash return to shareholders. GEC Pearson is our highest return project to date, and CIBT has a 38.5% ownership interest in this project through its investment in GEC Pearson Limited Partnership. CIBT subsidiaries are the general partners of six out of seven GEC projects (including this one), and a limited partner in all seven GEC projects, and therefore, it is expected that all future operating and financial results will be consolidated into CIBT’s future financial statements.
“Besides this project, for the past decade CIBT has demonstrated its business acumen by acquiring undervalued assets and enhancing their value to generate significant gains. Examples of major acquisition milestones include:
* Purchase of Sprott Shaw College in 2007 for $11 million
* Purchase of Acsenda School of Management in 2007 for $1 million
* Sale of Ascenda School of Management in 2016 for $5 million
* Purchase of KGIC College in 2009 for $4.3 million
* Sale of KGIC College in 2013 for $13.5 million
* Re-purchase of KGIC College and a chain of 18 schools in 2017 through a purchase of $12.3 million of secured debt owed by KGIC Inc., to a Canadian bank for $3.1 million
* Led the acquisition and development of seven student housing properties since 2014 having a budget of $600 million; the value of these properties have appreciated in excess of $100 million over the past 3.5 years
“We will strive to continue our successful track record while acting prudently on strategic decisions.”
GEC Pearson is a six floor building (2 floors concrete, 4 floors wood) located within a 10 minutes’ walk from a SkyTrain (Canada Line) station, located on the south side of Vancouver. GEC Pearson is conveniently located within a 1 station SkyTrain ride to Langara College, 2 SkyTrain stations away from Kwantlen Polytechnic University, and approximately 10 minutes from downtown Vancouver via the SkyTrain. GEC Pearson is expected to accommodate approximately 320 students and generate over $4 million gross rental income per year including excursion activities, landing service, on-site tutoring, student advisory and other related amenity services.
Possession date of this project is now expected to be October 31, 2017, delayed from the original expected date of August 2017 due to a labour shortage arising from the hyperactive construction market in Metro Vancouver.
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 centers and corporate offices at 45 locations in Canada and abroad. Total annual enrollment for the group exceeds 15,000 students. Its education providers include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Sprott Shaw College International, Urban International School (Toronto), Vancouver International College and CIBT School of Business. Through these schools, CIBT offers business and management programs in healthcare, hotel management, language training, Ontario high school diploma and over 150 career, language and vocational programs. CIBT’s property investments are owned by Global Education City Holdings Inc., an investment holding and management company focused on developing education related real estate such as student hotels, serviced apartments and education super centers totalling over $600 million. CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). GEA recruits international students for many elite kindergarten, 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 at www.cibt.net, www.studenthotel.ca and watch our corporate video at http://cibt.net/about/.
President, CEO and Chairman
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: firstname.lastname@example.org
Some statements in this news release contain forward-looking information (the “forward-looking statements”) about CIBT Education Group Inc. and its future plans. Forward-looking statements are statements that are not historical facts. 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 to raise equity investment and secure other required funding to acquire the project, usual construction risks, and the ability to obtain all required municipal approvals. 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.