VANCOUVER, BC / ACCESSWIRE / January 3, 2019 / CIBT Education Group Inc. (TSX: MBA), (OTCQX: MBAIF)
("CIBT" or the "Company") is pleased to report that one of its real estate investment projects,
Global Education City® (Richmond) (the "Project"), located in Richmond, BC received its Development Permit in
November 2018 and began excavation and site preparation during December 2018. The approvals are based on a community development
plan under which seven high rise towers are to be established in the city centre of Richmond, BC. Originally, Global Education
City® (Richmond) was designed as a single office tower with two high rise residential rental towers totalling approximately 368,000
square feet. Due to the significant rental shortage in the Metro Vancouver region, the Project has experienced an increase in
value.
In addition to the rental housing crisis in Metro Vancouver, there are considerable market demands for affordable living options
in the condominium space. The limited partnership that is acquiring the Project (the "LP") and the developer have reached an
agreement to relinquish one of the two rental towers to the developer. The developer will convert one rental tower into market
condominiums available for sale. In exchange for this arrangement, the purchase price for the Project's remaining office tower and
one residential rental tower has been reduced by more than $32 million, from $218 million to $109 million which factored in a
square footage reduction and a discount. The total rentable square footage of the Project has been reduced from 368,000 square feet
to approximately 238,000 square feet. The total cost per rentable-square-foot ("RSF") including land, construction, soft-cost and
finance fee has decreased to $459/RSF, down 23% from $592/RSF.
The LP has raised a total of $51 million in equity investment since March 31st, 2018. To date, CIBT has earned $10 million in
development fees from this Project and anticipates earning an additional $2 million in fees through fiscal 2019. These funds have
been used by CIBT to acquire at least a 20% equity interest in this GEC® project.
"We are excited about the development of Global Education City® (Richmond) which represents our eighth GEC® project and the 9th
and 10th GEC® buildings in Metro Vancouver upon completion," commented Toby Chu, Chairman, President and Chief Executive Officer of
CIBT. "Global Education City® (Richmond) represents a key part of our growing portfolio of student housing residences throughout
British Columbia and will contribute an additional 466 beds and 127,000 square feet of office and educational space to our
portfolio, once completed.
"With eight projects now under our portfolio, 2019 is shaping up to be a year of strong growth as we continue to increase our
bed count and maintain our position as western Canada's leading education and student housing provider. The focus will be to
continually retain a larger equity ownership in each of our projects so that CIBT Education Group shareholders can benefit from a
profitable education business reinforced by a lucrative and rapidly growing student housing business."
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.
For more information contact:
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
statement that CIBT anticipates earning an additional $2 million in development fees in respect of the Project during fiscal 2019.
The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the
"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 of the Group to raise additional
investment as well as mortgage financing, usual construction risks, the ability to obtain all required municipal approvals, and the
ability of the LP to satisfy all borrowing obligations. 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.
