VANCOUVER, April 3, 2019 /CNW/ - CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) ("CIBT" or the "Company") is pleased to report that deposit requirements for the Global Education City® project in Richmond, BC ("GEC Richmond" or the "Project") have been completed by Global Education City (Richmond) Limited Partnership (the "LP"). A total of $60 million has been paid since February 2018.
An overview of the Project follows:
- March 2018: The LP signed a Purchase and Development Agreement (the "PDA") to purchase one office tower and two rental apartments from a Vancouver developer for $218 million, or $230 million including FFE (furniture, fixture and equipment). At the time of signing the PDA, the Project purchase price was estimated at $60 million below market value. In exchange for the discounted purchase price, the PDA committed the LP to paying a $65 million deposit, of which $30 million was payable within 30 days of signing the PDA and the remaining $35 million within nine months of signing. The full news release is available at www.cibt.net under News Release.
- April 2018: The LP had completed the phase two equity raise of $15 million bringing the total equity raised by the LP to $45 million.
- November 2018: GEC Richmond had received the development permit, design panel approval and final reading.
- December 2018: Excavation and site preparation for the Project began and construction of the show home was completed.
- January 2019: The LP acquiring the Project reached an agreement with the developer to relinquish one of the two proposed rental apartments to the developer. The amended purchase price is $109 million, reduced from $218 million, approximately $32 million below market value bringing the total estimated discounted value received on the Project to nearly $92 million. Additionally, deposit requirements have been reduced from $65 million to $60 million.
- February 2019: Deposit requirements under the PDA of $60 million for the Project have been completed by the LP. Excavation, off-site preparation and construction are slated to begin on or around May 1st 2019.
"We are pleased with the development pace of this project, the high level of investor interest, and the nearly $92 million of discounted value received thus far," commented Toby Chu, Chairman, President and CEO of CIBT Group. "We look forward to the LP taking possession of North America's first Global Education City in 2022."
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 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., 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 & CEO
CIBT Education Group Inc.
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 and in this news release include, without limitation, the statement as to the planned Project possession in 2022. The forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results or achievements to differ materially from those expressed in or implied by forward-looking statements, including but not limited to the removal or satisfaction of all conditions precedent under the PDA, the ability of the LP to raise the remaining required funds for the Project from the sale of equity and commercial debt financing on acceptable terms, the ability to obtain all required municipal approvals, and usual construction risks. 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.
SOURCE CIBT Education Group Inc.
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