Vancouver, B.C., March 17, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) ("CIBT" or the "Company") is pleased to report that its subsidiary, GEC Oakridge Acquisition Limited Partnership has completed the purchase of three parcels of land designated for the GEC® Oakridge project (the “Project”). The total purchase price for the three parcels of land was $30.3 million, excluding closing costs and property transfer tax.
During the past year, GEC® Oakridge continued to complete its rezoning process with the City of Vancouver, on schedule. The Project will be a 18 storey concrete residential rental tower with the capacity to accommodate up to 475 occupants. GEC® Oakridge is located across the street from a significant development at the Oakridge Shopping Centre. Most importantly, the location is a one-minute walk to the Oakridge subway station, less than a ten minute walk to the Langara Community College, three subway stations to the Vancouver International Airport, and four subway stations to downtown Vancouver. There are hundreds of schools, colleges and universities located in downtown Vancouver, a popular area for international students. The development is expected to be completed by 2023.
“We are pleased to have taken ownership of the three parcels of land under the GEC® real estate portfolio,” commented Toby Chu, Chairman, President and CEO of CIBT Group. “The purchase price for all three parcels was $30.3 million while the latest appraised value exceeds $49 million due to the development value added by the Company and the bonus density assigned. The total development budget for the GEC® Oakridge project is approximately $103 million. Our goal is to obtain full rezoning and development approval within the year 2020 so that construction may start immediately thereafter. This new facility will be able to provide additional and much needed rental accommodation to nearly five hundred occupants.”
“The COVID 19 virus outbreak is affecting many families, including students coming to study in Vancouver, both domestic and international. The tuition revenue from our schools will likely be deferred but not cancelled,” continued Toby Chu. “Understandably, many homestay parents are cancelling reservations from students due to health concerns. However, such action is causing further stress for students looking for a place to live when Metro Vancouver’s vacancy rate is at 1%. Our real estate subsidiary, Global Education City Management Inc., has been working tirelessly to take-on these new bookings while maintaining a rigid health check protocol. As of today, all GEC® facilities are occupied, some at near full capacity due to extensions to stay in Canada compounded by additional demand from homestay family cancellations. We will continue to closely monitor the development of the epidemic and assess its impact on our operations, taking all reasonable steps to maintain a safe, clean and healthy environment for our students to study and live and our staff to work.
“Lastly, as a result of recent interest rate cuts by the Bank of Canada to historic lows, we are expecting some savings to the Company’s operations and outstanding loans for the duration of the year.”
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. The 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, language 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. The total portfolio and development budget of projects under Global Education's GEC® brand is over 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.
Toby Chu
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: info@cibt.net
FORWARD-LOOKING STATEMENTS
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 for the proposed GEC® Oakridge project in which a subsidiary of 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 to negotiate and enter into a binding agreement for the construction of the Project, the ability of GEC Oakridge Acquisition Limited Partnership to raise equity investment and secure other required funding to build 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.