VANCOUVER, BC / ACCESSWIRE / October 19, 2020 / CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF) ("CIBT" or the "Company") is pleased to report that one of its recently formed subsidiary limited partnerships ("Project 11") has received an additional C$2.613 million of subscriptions, with additional subscriptions of $2.7 million expected to be received before the end of October 2020.
If all expected subscriptions are received, Project 11 will have raised total equity of C$18.33 million, including the single subscription of $13.02 million received last month.
The new subsidiary will use the funds to acquire two rental apartment buildings in Vancouver (see CIBT's news releases of June 9th and October 1st, 2020). The Company expects that the acquisition of these two properties will be completed this month. Once these acquisitions are completed, the GEC® portfolio will comprise of 11 projects and 16 buildings currently operating under the GEC® brand or in the development phase, with a total of 1.5 million buildable square feet.
"We are pleased to see that our real estate business continues to grow with strong financial support from the investment communities in North America and abroad," said Toby Chu, Chairman, President and CEO of CIBT Education Group. "Besides the steady growth of our student accommodations business, we have also seen a surge of new enrollments of domestic students at Sprott Shaw College, while registration for our international division has remained stagnant due to border closures and isolation requirements. However, based upon inquiries and enrollments from the global student market, there is expected to be a steady rise for the January 2021 and March 2021 intakes in our international division.
"Although new international student arrivals slowed down since mid-March 2020, it is important to note that according to Immigration, Refugees and Citizenship Canada (IRCC) data (source: https://www.cicnews.com/2020/02/642000-international-students-canada-now-ranks-3rd-globally-in-foreign-student-attraction-0213763.html#gs.gvnx1k), Canada admitted 642,000 international students in 2019. Most of these students were enrolled in college and degree programs of two to four years in length. Many of our student-tenants from abroad have continued their studies and stayed in Canada since the start of the COVID-19 pandemic. The Canadian government has announced the re-opening, effective October 20th, 2020, of its borders to certain international students. The announcement is available on the government website: https://www.canada.ca/en/immigration-refugees-citizenship/services/coronavirus-covid19/students.html
"The pandemic has caused a global challenge when it comes to travel restrictions," continued Toby Chu. "The international students that have opted to stay here and continue their studies require readily available housing accommodation. This has created additional demand for our GEC® student housing portfolio. Our business model has always been to diversify our revenue sources and operate our company efficiently in positive or negative market environments. The re-opening of the border to eligible international students is expected to put our growth trajectory back on-track."
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) the expected completion and timing of closing of the acquisition of two rental apartment buildings, the statement as to CIBT continuing to operate efficiently in positive or negative market environments, and that the re-opening of the border to eligible international students is expected to put CIBT's growth trajectory back on-track. 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, the ability of the relevant limited partnerships to raise further funds as they are needed, and that the educational institutions to be attended by students who plan to reside at GEC® accommodations will appear on the Canadian government list of institutions with approved COVID-19 readiness plans (a requirement in order for international students to enter Canada). 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.