GEC® King Edward II Limited Partnership Takes Ownership of Properties
October 23, 2017
Vancouver, B.C., October 23rd, 2017 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company”) is pleased to report that GEC® King Edward II Limited Partnership (the “LP”) has acquired from a Vancouver developer title to the land and rights to construct the GEC® King Edward II project (previously referred to as Project 6) that was announced on February 9th 2016. During the past 18 months, the developer expended valuable efforts to obtain rezoning approval to convert 3 residential lots into a 46,000 square feet rental apartment building. During this period, the land value of the three residential lots has increased by approximately $11.59 million based on an appraisal and the most recent transacted value in the area. Agreement was reached with the developer to take over the development and remaining rezoning work in order to better control the development process and increase returns for CIBT as an investor in the LP.
GEC® King Edward II is located in Vancouver, approximately 300 feet from a Skytrain/Subway station. It is expected to be comprised of 46,000 net rentable square feet accommodating up to 184 student beds upon completion of development. The location of this project is only two subway stations (or 5 minutes) from downtown Vancouver in which over 100 educational institutions are located including public institutions such as the University of British Columbia Robson Campus, Simon Fraser University’s Segal School of Business, British Columbia Institute of Technology, Vancouver Community College and private colleges such as Sprott Shaw College, Sprott Shaw Language College and VIC Vancouver International College.
The GEC® King Edward II project site was purchased by the developer on behalf of Global Education City Holdings Inc. in 2015 for a total price of approximately $9.19 million. Additional expenses, including development fees, rezoning and finance costs, totaling approximately $3.78 million have been incurred. The value of the property is now appraised at approximately $20.78 million representing a gain of approximately $11.59 million before value-added expenses, or a gain of $7.81 million after factoring in financing cost, rezoning and development expenses.
“As our student housing pipeline grows, we anticipate continuing to add high class assets to our portfolio such as GEC® King Edward II, a 184 bed building to be situated in the heart of Vancouver,” said Toby Chu, CEO and Chairman of CIBT Education Group. “With a growing population of students, both domestic and international coming to Vancouver to study, we are only filling a tiny percentage of the demand. As a result, we plan to continue to add prime assets similar to GEC® King Edward II at a rapid pace in order to maintain our position as Canada’s leading student housing provider.”
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 44 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, Vancouver International College and CIBT School of Business. Through these schools, CIBT offers business and management programs in healthcare, hotel management, language training, and over 150 career, language and vocational programs. CIBT’s property investments are held 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 and watch our corporate video at www.cibt.net.
Chairman, President and Chief Executive Officer
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 about plans to continue to add prime assets similar to the proposed GEC® King Edward II project in which CIBT has invested. 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 CIBT to identify attractive property sites available for acquisition, the ability of the relevant limited partnerships in which CIBT is invested to raise equity investment and secure other required funding to complete construction of 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.