VANCOUVER, B.C., Sept. 03, 2019 (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 Education Mega Center Limited Partnership, has completed the purchase of land for the development of GEC Education Mega Center® (“EMC”) in Surrey, B.C. The total land purchase price was $22.6 million, or $56 per buildable square foot, plus carrying costs and development fees. This project is well below the cost of comparable properties in the neighboring area where a property adjacent to the EMC project was sold for $106 per buildable square foot in December 2018.
EMC was originally designed to be a 55-floor, 550,000 square feet high-rise concrete mixed-use tower whose tenants would include schools, offices, hotels and market rental apartments. After extensive review, EMC has been redesigned to a 39-floor building with 404,000 gross buildable square feet, subject to approval from the City of Surrey. The revised project is designed to be a multi-purpose building of stratified micro-condos, rental apartments, commercial offices designed for educational use, and four floors of amenity space. The Company anticipates that the redesign and value engineering will create savings of nearly $50 million compared to the original budget, augmented by the recent decrease in anticipated construction and financing costs.
“We are very pleased with the efficient use of space and reduction in cost to build EMC in Surrey, B.C.,” commented Toby Chu, Chairman, President and CEO of CIBT. “The City of Surrey recently announced the redevelopment of Surrey’s Centre Block, over two million square feet of which will be redesigned and upgraded. The Centre Block development is less than 50 feet from our EMC site. With these newly approved developments and upgrades, we are excited with the future prospect of our EMC project.”
For news regarding the Surrey Centre Block redevelopment, please visit the following links:
https://urbansurrey.com/category/development/
https://dailyhive.com/vancouver/surrey-central-bus-exchange-recreation-centre-redevelopment
About GEC Education Mega Center®:
GEC Education Mega Center® has been redesigned to accommodate over 800 residential tenants, commercial spaces for 5 – 10 schools and amenities. In addition to serving the education community located within GEC Education Mega Center®, the building will also serve students attending neighboring academic institutions such as Simon Fraser University (Surrey) campus and Kwantlen Polytechnic University at the Surrey Civic Plaza. These facilities are conveniently located across the street from GEC Education Mega Center® site. Douglas College Surrey Training Centre and Sprott Shaw College (Surrey) are also located within 1.5km from GEC Education Mega Center® site.
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, 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. 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.
Toby Chu
Chairman, President and Chief Executive Officer
CIBT Education Group Inc.
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 Education Mega Center® 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 of GEC Education Mega Center 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.