VANCOUVER, June 24, 2019 /CNW/ - CIBT Education Group Inc. ("CIBT" or the "Company") (TSX: MBA, OTCQX International: MBAIF) is pleased to report that one of the Company's wholly owned subsidiaries, Global Education City Management Corp ("GEC Management"), has signed a master lease (the "Agreement") with a Vancouver based real estate developer for a residential rental property to be constructed in Metro Vancouver. The lease is for a term of twenty-one years at discounted market-rental rates. The project will be named GEC® Kingsway.
GEC Management will also assist in the design, space-planning, construction and furnishing of the property with GEC Management designed smart and hideaway furniture. Post construction, GEC Management will recruit students to fill approximately 350 to 410 beds to be located at the site, implement GEC Management's marketing and reservation systems, and provide all amenity services that are consistent with other GEC® properties, including weekend excursion, housekeeping, reservation, security, and property maintenance. The GEC® Kingsway project is finalizing its rezoning process, and the possession date is expected to be in early 2022.
"As a leading student housing provider in Metro Vancouver, we are pleased to commence implementation of the next phase of our strategy," commented Toby Chu, Chairman, President and CEO of CIBT Education Group. "As a recognized and trusted source of student housing infrastructure, our industry peers have validated our business model of identifying undervalued real estate assets and utilizing our framework of supplying first class tenants, as well as our top of the line management solutions, to enhance the value of every property we have managed.
"This success has led us to the next phase of our business strategy, managing properties for other rental property owners. By doing so, other owners will benefit from our experience and parties will be able to achieve greater economies of scale with better cost sharing in furniture, equipment, marketing, staffing, operations, and supply purchases, resulting in lower operating costs and improved operating income of the property. On the other hand, GEC Management will generate strong, recurring rental and management fee revenue.
"Currently, the GEC® portfolio, including this latest addition, consists of 12 buildings at 10 locations, comprised of approximately 1.68 million gross buildable square feet designed for 4,000 beds primarily targeting domestic and international students. Over 800 beds are operational, and 3,200 beds are under various stages of development.
"While we are aggressively expanding our student-housing portfolio, our education services are progressing steadily with growth and profitability. In the past year, the total number of locations of our education services, including Sprott Shaw College, Sprott Shaw Language College, VIC Vancouver International College, CIBT School of Business and Global Education Alliance recruitment offices, increased from 33 to 35 locations, in Canada and abroad.
"CIBT maintains a leading position as an education services and real estate development company providing quality education, supported by clean, safe and convenient accommodations to the student community."
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 centers 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 centers. Total portfolio and development budget of projects under Global Education's 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.
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 includes, without limitation, the statement that the tenancy possession date of the GEC® Kingsway project is expected to be in early 2022. 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 property owner's ability to obtain all required municipal approvals and obtain sufficient financing on favourable terms, 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.
For further information: Toby Chu, Chairman, President & CEO, CIBT Education Group Inc., Investor Relations Contact: 1-604-871-9909 extension 310 or | Email: [email protected]