Vancouver, British Columbia--(Newsfile Corp. - September 4, 2019) - CIBT Education Group Inc. (TSX: MBA) (OTCQX: MBAIF) ("CIBT" or the "Company") is pleased to report the completion of investments in an aggregate of CAD$10 million into one of CIBT's subsidiary limited partnerships, GEC Oakridge Limited Partnership. These subscriptions are a modification of the ones announced in the Company's news release of June 18, 2019. The Company earned a development fee which it has used to acquire additional units of GEC Oakridge Limited Partnership.
About GEC Oakridge
GEC Oakridge Limited Partnership is under contract to purchase three parcels of land. The land is centrally located in Vancouver near the intersection of West 42nd Avenue and Cambie Street. The site is approximately 250 feet from the Oakridge subway station providing easy access to numerous education providers throughout Vancouver. For example, Langara Community College is only one subway stop away; Kwantlen Polytechnic University and BCIT in Richmond are only five subway stations away; and it is only five stops to downtown Vancouver where more than 50 language schools, trade schools, colleges and universities are located.
The Company's plan is to develop these lands into an 18- floor, 125,000 square feet highrise rental apartment building, subject to approval by the City of Vancouver. By utilizing smart design furniture featuring hideaway and space efficiency, it is expected that the property will have the capacity to provide accommodations for up to 475 long-stay students. The rezoning process for this project started in January 2019. The total development budget is approximately $102 million while the timeline for construction is estimated to be 3.5 years.
"We are very pleased that one of our subsidiary limited partnerships has successfully raised another substantial investment," commented Toby Chu, Chairman, President and CEO of CIBT. "GEC Oakridge will be a flagship building located at the centre of the City of Vancouver within the Cambie Corridor Plan, where the city has plans to allow for high-density rental zoning. The demand for Canadian education from international students has increased substantially over the past five years. According to the Canadian Bureau for International Education, the number of international students arriving in Canada to study grew by 119% between 2010 to 2017, an average growth of 17% per year. According to a recent report(*1), the University of British Columbia is experiencing a wait-list of 6,000 students for their student housing this September, an increase of 50% from the previous year's wait-list of 4,000 students.
"CIBT has a strong education platform catering to domestic and international students under the brands Sprott Shaw College, Sprott Shaw Language College and VIC Vancouver International College. As an education provider, we have benefited from the increased demand from international students. In addition, our GEC student housing platform allows us to further leverage our positioning in the education space and capture recurring rental revenues by providing short-term and long-term accommodations to students coming to study in the Metro Vancouver area."
(*1) CBC.ca article: https://www.cbc.ca/news/canada/british-columbia/ubc-nano-suites-move-in-day-1.5267186
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 45 locations in Canada and abroad. Total annual enrollment for the group exceeds 12,000 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 and vocational programs. CIBT owns Global Education City Holdings Inc. ("Global Education"), an investment holding and development company focused on developing education related real estate such as student hotels, serviced apartments and education centres. Total portfolio and development budget of projects under Global Education's GEC brand is in excess of C$1 billion. The various GEC properties provide accommodations to over 1,500 students and other tenants. 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.
For more information contact:
Toby Chu
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 310 or | Email: info@cibt.net
FORWARD-LOOKING STATEMENTS
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) the statement that the timeline for construction of the GEC Oakridge project is estimated to be 3.5 years. 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 GEC Oakridge Limited Partnership to raise further funds as they are needed. 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/47521
