CIBT Group Provides Update on its GEC® Branded Real Estate Portfolio
November 3, 2020
Vancouver, B.C., November 3rd, 2020 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company”), a leading education and student housing provider, is pleased to provide an update on its GEC® branded real estate portfolio.
The total GEC® branded portfolio comprises 11 projects, 16 buildings and over 1.5 million square feet of net rentable space. Upon completing the projects below, the total number of student beds will be approximately 3,260, with an estimated C$1.5 billion value.
Fully operational facilities:
- GEC® Viva Tower is a fully operational, seventeen-storey tower located in downtown Vancouver. This facility was sold to an institutional buyer in 2018 with a five-year leaseback agreement.
- GEC® Granville Hotel and Suites is a fully operational, twelve-storey concrete hotel and student accommodations located one block from GEC® Viva Tower.
- GEC® Burnaby Heights is a fully operational, four-storey concrete and wood-frame condominium near Simon Fraser University Burnaby.
- GEC® Pearson comprises two fully operational rental apartment towers, located in South Vancouver, at Cambie Street and West 60th Avenue.
- GEC® Marine Gateway comprises two fully operational rental apartment buildings that provide 245 beds, located less than 100 meters from the Marine Gateway SkyTrain station. The purchase was completed on October 27th, 2020.
Projects under construction:
- GEC® Global Education City (Richmond) comprises an office tower and a rental apartment under-construction. This project is located at Richmond’s heart, approximately 50 meters from the Lansdowne Mall SkyTrain station. The possession date is scheduled for early 2023.
- GEC® King Edward is a four-storey rental apartment under construction and located within 100 meters from the King Edward SkyTrain station. The possession date is Fall 2022.
- GEC® Kingsway is a GEC® branded rental building under construction and master-leased from the owner by Global Education City Management for 21 years. The project will be completed in 2023.
Projects in rezoning phase:
- GEC® Cyber City – two office towers and a micro-suite hotel located approximately 100 meters from the Aberdeen Centre SkyTrain station.
- GEC® Education Mega Center Surrey – located at Surrey City Central, approximately 50 meters from the Surrey Central SkyTrain station. The project is a forty nine-storey, concrete high-rise multi-purpose tower that consists of commercial, condominium and rental units, scheduled for review by the Urban Design Panel in mid-November 2020.
- GEC® Oakridge – an eighteen-storey, concrete high-rise rental tower located approximately 100 meters from the Oakridge SkyTrain station. The council hearing is expected to commence in January 2021.
Corporate finance activities:
- The total amount raised by CIBT and its subsidiary limited partnerships during fiscal 2020 and up to October 31st, 2020, exceeds C$28.7 million.
- Total corporate finance activities through mortgage financing, re-financing and construction loan completed during fiscal 2020 up to October 31st, 2020, totalled approximately C$203 million.
“We are pleased to have received tremendous support from the investment community despite the global pandemic raising uncertainty worldwide,” said Toby Chu, Chairman, President and CEO of CIBT Education Group. “Fast forward to today, Global Education City Holding’s business model experiences the stress-test challenge from the economic environment but continues to thrive, evolve and enhance its value proposition to shareholders.”
Toby Chu added, “We have created a fully integrated hub that provides education services and student housing to supply students with necessary living accommodations under the GEC® brand. By supplying our accommodations to over 72 schools in Metro Vancouver serving thousands of Canadian students and international students from 77 countries, GEC® is becoming a well-known brand in the student housing sector. With Vancouver’s vacancy rate at an all-time low, we expect investments to continue flowing towards under-valued opportunities in this sector. For that reason, CIBT provides a unique opportunity for investors to enter the burgeoning student housing sector in Western Canada.”
For more information, please visit www.GECliving.com.
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 accommodations 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.
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 319 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 plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include (without limitation) statements as to expected construction commencement and completion dates and the projected values of GEC® properties upon completion of construction. 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 relevant limited partnerships to raise further funds as they are needed. The projected value of each GEC® property is based on a series of analysis of various factors include (1) the cap rate based on market statistics, (2) current market environment, conditions and sentiment, (3) price per square foot in recent transactions in the neighbouring area, (4) input received from appraisers and real estate professionals, and (5) calculations of pro forma income and expenses for the project. 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.