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.
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
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.
