CIBT Subsidiary Signs Offer-to-Purchase to Acquire and Develop the 9th GEC Branded Property

Vancouver, British Columbia (FSCwire) - CIBT Education Group Inc. (“CIBT” or the “Company”) (TSX: MBA, OTCQX International: MBAIF) is pleased to announce the signing of a letter of intent for the purchase by one of its real estate investment limited partnerships (the “LP”) of two parcels of land to develop a serviced apartment highrise (the “Project”) along the Cambie Street corridor designed for students and a growing population of technology workers in Metro Vancouver.  The Project is expected to have a gross building area of approximately 63,000 square feet. The total development budget for this Project, including land, construction, FFE (furniture, fixture & equipment) and financing costs, will be approximately $60 million, assuming the Project proceeds. 

The proposed Project will be a concrete construction accommodating approximately 220 beds.  The Project site is less than a one-minute walk from a SkyTrain station, and approximately 10 minutes travel time by SkyTrain to downtown Vancouver, Richmond City Centre and the Vancouver international airport.  This Project has received re-zoning approval and a development permit application is expected to be submitted shortly.  Construction for this Project is expected to commence in early 2019.

“Vancouver real estate continues to experience strong demand from domestic and international students while demands for rental properties continue to be in a crisis mode.  In recent years, Vancouver has earned the nickname of Silicon Valley North, prompted by an influx of technology giants such as Microsoft, Amazon, Yahoo, Facebook, Intel, and Alibaba from China who have expanded their presence to Metro Vancouver.  These technology companies have hired over 106,000 skilled workers for the high technology space in Metro Vancouver.  As a direct result of the continued investment by these companies, workers from across Canada, United States and overseas are moving to Vancouver to seek career opportunities,” said Toby Chu, Chairman, President and CEO of CIBT. “We expect the tech industry to continue evolving at a rapid rate, which will add further pressure to the rental housing bottleneck within the city. As such, we plan to acquire these two parcels of land that are strategically located to serve the existing pool of students on our waitlist and the growing population of technology workers arriving in Metro Vancouver.”

The letter of intent is non-binding other than as to its exclusivity provision.  The Company is negotiating a formal purchase and sale agreement as well as a development contract for this Project.  The closing date is expected to be in December 2018.

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 43 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., an investment holding and development company focused on developing education related real estate such as student hotels, serviced apartments and education super centres.  Total portfolio and development budget of projects under the GEC® brand is more than C$1 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.

Toby Chu

Chairman, President and Chief Executive Officer

CIBT Education Group Inc.

Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: info@cibt.net

Forward-Looking Statements:

Some statements in this news release contain forward-looking information (the “forward-looking statements”).  Forward-looking statements are statements that are not historical facts and in this news release include, without limitation, the statements as to the expected acquisition and development of the Project, the expected Project budget, the expected timing of the submission of the development permit application, the expected timing of Project construction, and the expectation that the demand for rental accommodations will continue to be strong.  Forward-looking statements are subject to various risks, uncertainties and other factors (collectively, “Risks”) that could cause CIBT’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements.  The Risks include, without limitation, the ability to negotiate and enter into a binding purchase agreement for the purchase of the planned Project site and a binding agreement for the construction of the Project, the ability of the LP to raise the required funds from the sale of equity and to raise the necessary commercial debt financing on acceptable terms, the ability to obtain all required municipal approvals, usual construction risks, and the market demand for accommodations in the Project, once completed.  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.

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