GEC® Flagship Project in Richmond Receives Third Reading Approval
July 23, 2018
Vancouver, B.C., July 23rdth, 2018 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company”) is pleased to report that one of its real estate investment projects (the “Project”), to be located in Richmond, BC has received Third Reading approval by Richmond City Council. The approvals are based on a community development plan of several high-rise towers to be located at the city centre of Richmond, B.C. This GEC® flagship education real estate project, named Global Education City® Richmond, will be comprised of one office tower and two high rise residential towers.
To date, CIBT has earned a $9 million development fee from this Project and anticipates earning an additional $4 million in fees through the remainder of 2018. These funds will be used by CIBT to acquire at least a 20% equity interest in this GEC® project.
“We are excited about the development of Global Education City® Richmond, our eighth GEC® project and the 9th, 10th and 11th GEC® buildings in Metro Vancouver upon completion” commented Toby Chu, Chairman, President and Chief Executive Officer of CIBT. “Global Education City® Richmond represents a key part of our growing portfolio of student housing residences throughout British Columbia and will contribute an additional 1,100 beds to our portfolio once completed. Construction on this facility is expected to commence in late 2018.
“We are also pleased to report that the phase 3 equity raise of $5 million by Global Education City Richmond Limited Partnership (“GEC Richmond LP”) scheduled for July 20th, 2018 has been completed. A total of $50 million equity has been received since March 31st, 2018. We have received confirmation from the same investment group that they will be completing the remaining $15 million by December 2018. We look forward to the commencement of construction of North America’s first such project, to be situated at the heart of downtown Richmond. Total construction value for the Project exceeds $600 million, of which GEC Richmond LP’s development budget and ownership value for the Project is approximately $230 million.”
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 development company focused on developing education related real estate such as student hotels, serviced apartments and education super centres. Total portfolio and development budget of projects under the GEC® brand is more than C$1 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.
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 the planned composition of the Project, that construction is expected to commence in late 2018, that an investment group (the “Group”) will complete an additional $15 million investment in GEC Richmond LP by December 2018, and that CIBT anticipates earning an additional $4 million in development fees relating to the Project through the remainder of 2018. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the “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 the Group to complete an additional $15 million investment in GEC Richmond LP by December 2018, usual construction risks, the ability to obtain all required municipal approvals, and the ability of GEC Richmond LP to satisfy all borrowing obligations. 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.