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.
Toby Chu
Chairman, President & CEO
CIBT Education Group Inc.
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 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.