CIBT Reports Completion of Property Financing and Mortgage Renewals of over $80 Million by Subsidiary Limited Partnerships
VANCOUVER, B.C., Sept. 09, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – CIBT Education Group Inc. (“CIBT” or the “Company”) (TSX: MBA, OTCQX International: MBAIF) is pleased to report that three of its subsidiary limited partnerships (the “LPs”) have completed four property financings and mortgage renewals over the past 10 weeks. The LPs are GEC King Edward II Limited Partnership, GEC Granville Limited Partnership and GEC Education Mega Center Limited Partnership. The total value of property financing and mortgage renewals upon completion exceeds $80 million. The property financing funds were raised through an acquisition loan for GEC Education Mega Center Limited Partnership. The other LPs completed their respective mortgage renewals at discounted interest rates, and the Company anticipates a substantial decrease in finance costs in the future.
“Q4 of fiscal 2019 was a busy but productive quarter for us at CIBT,” commented Toby Chu, Chairman, President and Chief Executive Officer of CIBT. “We’re glad to have executed all these transactions within a short time frame while completing the acquisition of the GEC Education Mega Center® property, and we are especially pleased that there will be a substantial reduction in finance costs under the mortgage renewals.
“According to the July 2019 edition of the Goodman Report(*1), proposed rental construction in Vancouver dropped 29% in two years, while new residents to Vancouver are increasing by approximately 35 to 40,000 annually. A number of the new residents are renters, and the gap between supply and demand is widening rapidly which will impact the rental rate and valuation of rental properties in the coming years. For these reasons, we plan to embark on a number of exciting projects in our pipeline in fiscal year 2020,” continued Toby Chu. “The construction of GEC® Richmond, which has a budget of $109 million, started in August 2019 and the construction of GEC® King Edward is set to begin this month. For the new fiscal year commenced on September 1st, we expect to complete the rezoning applications for two other sizable projects GEC Education Mega Center® in Surrey and GEC® Oakridge in Vancouver, which has a budget of $250 million and $106 million, respectively.
“In addition to advancing our GEC® student housing portfolio, we will consider acquiring Canadian education providers as and when attractive investment opportunities arise, which will also feed into our student accommodations business.”
(*1) Goodman Report: https://goodmanreport.com/app/uploads/2019/07/2019-Mid-Year-Report_web.pdf
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 centres 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 centres. Total portfolio and development budget of projects under Global Education’s GEC® brand is in excess of C$1 billion. The various GEC® properties provide accommodations to over 1,500 students and other tenants. 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.
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 statement that the construction of GEC® King Edward is set to begin this month, and that the Company expects to complete the rezoning applications for GEC Education Mega Center® in Surrey and GEC® Oakridge in Vancouver. 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 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.
For more information contact: Toby Chu Chairman, President & CEO CIBT Education Group Inc. Investor Relations Contact: 1-604-871-9909 extension 310 or | Email: email@example.com