CIBT Arranges Sale of Ground Floor Commercial Strata Units of GEC® Burnaby Heights
March 7, 2018
Vancouver, BC – March 7th, 2018 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) is pleased to announce that one of its real estate investment limited partnerships has entered into a formal Purchase and Sale Agreement to sell four commercial ground floor units at GEC® Burnaby Heights for $6 million. The closing is expected to be held on or before May 31, 2018.
The GEC® Burnaby Heights building was purchased on November 2nd, 2015. It is a four-storey condominium project with four ground floor commercial strata units and thirty residential strata units located on the second to fourth floors. The building was purchased for $21 million inclusive of FFE (furniture fixture and equipment), or $17.5 million without FFE, with an averaged cost of $598 per square foot. The ground floor commercial units contain no FFE requirement. The proposed sale of the four ground floor commercial units represents a selling price of approximately $726 per square foot before adjustments. GEC Burnaby Heights Limited Partnership will retain all the residential condominium units on the 2nd, 3rd and 4th floors which are fully occupied by students attending Simon Fraser University, Capilano University, BCIT and other schools within Metro Vancouver.
“By exiting the commercial units on the ground floor, we will reduce the mortgage interest, generate additional cash flow, provide liquidity to the limited partners (including a subsidiary of CIBT), and generate an attractive return within 15 months after possession,” commented Toby Chu, Chairman, President and CEO of CIBT. “We will continue to focus on the student residence component of the building and seek expansion opportunities in the area.”
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 centres and corporate offices at 43 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 owns 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 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.
Chairman, President and Chief Executive Officer
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”). Forward-looking statements are statements that are not historical facts and in this news release include, without limitation, statements about the expected closing date of the sale of the four commercial ground floor units, the expected sale price per square foot, and that the proposed sale will generate an attractive return. 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 satisfaction of all closing conditions within the anticipated timetable. 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.