VANCOUVER, BC / ACCESSWIRE / September 15, 2022 / CIBT Education Group Inc. (TSX:MBA, OTCQX International:MBAIF) ("CIBT" or the "Company") is pleased to provide the following updates on its portfolio of academic assets and real estate investments.
Overview of CIBT's Portfolio:
- College Enrollments: Sprott Shaw Language College has seen a surge in registrations and enrollments for the fall 2022 semester as Canada re-opened its borders for international students late last year, while Sprott Shaw College also saw a significant increase in domestic enrollment in 2021. Domestic and international students who may have placed their study plans on hold during the COVID pandemic are returning to campuses across the province, resulting in higher occupancy rates at GEC® rental properties and an increase in the Company's education revenue.
- GEC Education Mega Center® ("EMC"): EMC received rezoning approval on February 21st, 2021. The Company's subsidiary, Global Education City Holdings Inc. ("Global Holdings"), submitted development and building permit applications in late 2021 and is expecting a final reading date set by the City of Surrey before year-end, followed by construction permit approvals. The total construction budget, including land costs, now stands at $318 million.
- GEC® King Edward: Construction of GEC® King Edward started in January 2021. The Company expects construction to be completed by December 2022, in time for the 2023 Spring semester starts by adding 200 beds and 48,000 gross buildable square feet to the portfolio. The total construction budget, including land cost, is approximately $45.4 million and a projected value of $70 million after possession and stabilization. Several schools are entering into lease contracts with Global Holdings requesting large blocks of available rental units, leading to this property being nearly sold out before construction completes in December.
- GEC® Granville Hotel and Suites:Early in the COVID pandemic, the hospitality sector experienced a drop in occupancy rates due to the border closure. Since September 2021, GEC® Granville has experienced a substantial recovery, with revenue reaching a record high month at $1.265 million in July 2022, compared to the lowest point of $130,000 in September 2021, a recovery of nearly ten-fold.
- Other Operational GEC® Properties: Since Canada's borders re-opened, the occupancy rate has reached near-full capacity at all GEC® locations. Additionally, rental rates have increased significantly, surpassing pre-COVID levels.
- New projects under review: A proposal to purchase a parcel of land on the Cambie Street corridor to construct a ten-storey rental tower is under negotiation. In addition, Global Holdings is discussing with prospective partners an opportunity to acquire ownership in a substantial project in Metro Vancouver. Negotiations on these initiatives will continue in the coming weeks.
Toby Chu, Chairman and CEO of CIBT, commented, "Since the launching of Global Holdings in 2015, we have expanded our real estate portfolio from one project to ten projects comprising 15 buildings. Seven of these buildings are fully operational, accommodating over 1,000 tenants at any point in time. The remaining properties are at different stages of development or construction, which we aim to complete in the coming few years.
"Among the five GEC® projects under development, three properties are located close to other large developments in Metro Vancouver, which the Company expects to add substantial value and attraction to the GEC® projects:
- GEC® Marine Gateway is located across from the Marine Gateway 2 development project, which consists of 1,000 new residential units and office space for 1,600 workers. See related news at https://dailyhive.com/vancouver/marine-gateway-2-pci-developments-8530-cambie-street-vancouver
- GEC® Oakridge will be located across from the Oakridge development project being developed by WestBank, which is regarded as the largest real estate development in Vancouver's history, according to Dailyhive news. See related news at: https://dailyhive.com/vancouver/oakridge-centre-redevelopment-vancouver-2018-design
GEC Education Mega Center® will be located across the proposed Simon Fraser University expansion and planned development of two office towers in the Central Business District of Surrey, British Columbia. See related news at https://dailyhive.com/vancouver/surrey-central-station-centre-block-redevelopment
The Company and Global Holdings appeared in various newspapers and online news portals. To view these articles, please visit the following links:
About CIBT Education Group:
CIBT Education Group Inc. is one of Canada's largest education and student housing investment companies focused on the domestic and global education market since 1994. CIBT owns business and language colleges, student-centric rental apartments, recruitment centres and corporate offices at 45 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College Corp. ("SSCC") (established in 1903), Sprott Shaw Language College ("SSLC"), Vancouver International College Career Campus ("VIC") and CIBT School of Business & Technology Corp. ("CIBT China"). CIBT offers over 150 educational programs in healthcare, business management, e-commerce, cyber-security, hotel management, and language training through these schools. In 2021, CIBT serviced over 10,000 domestic and international students through its educational and rental housing subsidiaries.
CIBT owns Global Holdings, an investment holding and development company focused on education-related real estates such as student-centric rental apartments, hotel and education super-centres. Under the GEC® brand, GECH provides accommodation services to 90 schools in Metro Vancouver, serving 1,500 students from 71 countries. The total portfolio and development budget under the GEC® brand exceed $1.5 billion.
CIBT also owns Global Education Alliance Inc. ("GEA") and Irix Design Group Inc. ("IRIX"). GEA recruits international students for 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 videoatwww.cibt.net.
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: email@example.com
Some statements in this news release contain forward-looking information (the "forward-looking statements"). Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, the anticipated effects of planned construction projects near GEC® projects, that a final reading date for the EMC project will be set by the City of Surrey before year-end, and that construction of GEC® King Edward will be completed by December 2022. The forward-looking statements are subject to various risks, uncertainties and other factors that could cause CIBT's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. 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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