VANCOUVER, BC / ACCESSWIRE / September 8, 2020 / CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF) ("CIBT" or the "Company") is pleased to report that one of its subsidiary limited partnerships has received a US$10 million investment (approximately C$13.1 million). The funds will be used by the new subsidiary to acquire two rental apartment buildings located in Vancouver, announced by CIBT on June 9th, 2020. Details of the acquisition target, closing date and other information will be announced shortly. Assuming the acquisition completes, the GEC® portfolio will comprise of 11 projects and 16 buildings operating under the GEC® brand, with a total buildable square footage of 1.5 million.
"We are pleased to see the level of financial support that we have received from the investment community as we expand our rental and development income despite economic and pandemic uncertainties," said Toby Chu, Chairman, President and CEO of CIBT Education Group. "This latest round of $13.1 million investment adds to the $4.9 million investment as reported on September 1st, 2020. We view these successful closings as a testament and endorsement of our business model that transforms conventional rental apartments into student-centric accommodations while operating the facilities with maximum efficiency.
"Our GEC® projects provide a unique opportunity to invest in the burgeoning Western Canadian rental apartment sector with a particular focus on the student demographic group using smart-furniture and unique designs. With vacancy rates remaining at all-time lows of around 1%, applications to construct rental apartments having declined substantially year-over-year according to Canada Mortgage and Housing Corporation, and a commercial real estate report published online (https://goodmanreport.com/app/uploads/2019/07/2019-Mid-Year-Report_web.pdf). The report discloses that only 372 rental apartments have started construction in the City of Vancouver as of June 30th, 2020, down from 954 at the same time last year, which represents a drop of new supply by 156% while the vacancy rate is sitting at about 1%. The report also indicates that the typical period currently required for a developer to rezone lands and complete construction is seven years. Furthermore, the pandemic is causing economic uncertainties, and many prospective homebuyers are likely suspending their purchases and remain as renters. This will obviously increase the strains to the already critical supply of rental inventory.
"Anticipating that the rental crisis will create tremendous opportunities, CIBT continues to move towards under-valued opportunities in this sector while the supply of new rental apartments is in a chronic shortage. We have created a fully integrated hub that provides education services while utilizing our student housing arm to supply students with necessary living accommodation under the GEC® brand. For more information, please visit our newly launched student living website www.GECliving.com."
About CIBT Education Group:
CIBT Education Group Inc. is one of the largest education and student housing investment companies in Canada focused on the domestic and the 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 (established in 1903), Sprott Shaw Language College, Vancouver International College and CIBT School of Business. Through these schools, CIBT offers over 150 educational programs in healthcare, business management, e-commerce, hotel management and language training. The total annual enrolment for the group exceeds 12,000 students. CIBT owns Global Education City Holdings Inc. ("Global Holdings"), an investment holding and development Company focused on education-related real estate such as student-centric rental apartments, hotels and education super-centres. Global Holdings, under the GEC® brand, provides accommodation service to 72 schools in Metro Vancouver, serving 1,500 students from 77 countries. The total portfolio and development budget under the GEC® brand exceeds C$1.4 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.
Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: [email protected]
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. Forward-looking statements in this news release include (without limitation) the expected completion of the acquisition of two rental apartment buildings and the statement as to CIBT continuing to move towards under-valued opportunities in the rental apartment sector. 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, including but not limited to usual construction risks, obtaining all necessary regulatory approvals, and the ability of the relevant limited partnerships to raise further funds as they are needed. 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.