VANCOUVER, BC / ACCESSWIRE / October 1, 2020 / CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF) ("CIBT" or the "Company") is pleased to report that one of its new subsidiary limited partnerships has removed subject conditions and advanced an additional deposit for the acquisition of two residential buildings in Metro Vancouver ("Project 11"), first disclosed in the Company's news release of June 9th, 2020.
The Company also reports the receipt of mortgage approval by a leading commercial lender at an annual interest rate of approximately 1.7% over ten years for Project 11. The parties are proceeding with the preparation of closing documents with a targeted closing date before the end of October 2020. Upon closing of this transaction, the GEC® portfolio, both operational and under development, will comprise of 11 projects and 16 buildings under the GEC® brand, with a total of 1.5 million square feet.
"We look forward to completing this transaction that was secured in June 2020 during the peak of the COVID-19 pandemic period," said Toby Chu, Chairman, President and CEO of CIBT Education Group. "With interest rates remaining at all-time lows, this is an opportunistic time for us to continue acquiring under-valued residential assets and expand our portfolio. Both buildings have consistently produced an occupancy rate above 95% and will provide the GEC® portfolio with steady and recurring rental income immediately upon closing. With vacancy rates in the Metro Vancouver area consistently low at the 1% range, we remain focused on locating undervalued assets and transforming them into student-centric serviced apartments."
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 enrollment 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 estates such as student-centric rental apartments, hotels and education super-centres. Under the GEC® brand, Global Holdings 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) statements as to the expected completion and timing of closing of the acquisition of the eleventh GEC® branded project in Metro Vancouver, that this project will provide a steady and recurring rental income immediately upon closing, and that CIBT will continue to identify and acquire undervalued assets and transform them into student-centric serviced apartments. 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, including but not limited to usual construction risks, obtaining all necessary regulatory approvals, and the ability of the applicable limited partnerships in which the projects are held 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.