VANCOUVER, BC / ACCESSWIRE / January 7, 2019 / CIBT Education Group Inc. ("CIBT" or the "Company") (TSX: MBA,
OTCQX International: MBAIF) is pleased to announce the signing of three property purchase agreements for an aggregate purchase
price of $30.3 million. These lands will be the site of the development of a highrise serviced apartment (the "Project") near the
corner of Cambie Street and West 42nd Avenue in Vancouver, to be owned by GEC Oakridge Limited Partnership (formerly named GEC
Langara Limited Partnership) in which a subsidiary of CIBT is an investor. The Project, named GEC® Oakridge, is situated at the
centre of the City of Vancouver within the Cambie Corridor Plan ("CPP"), where the city has plans to allow for high-density rental
zoning. The location is also approximately a one minute walk to the Oakridge SkyTrain station located at the corner of Cambie
Street and West 41st Avenue.
The total development budget for this Project, including land, construction, FFE (furniture, fixture & equipment) and financing
costs, is approximately $103 million. After construction, GEC® Oakridge will be an 18 storey, 125,000 square feet concrete highrise
tower with the ability to accommodate up to 430 beds. The Project is subject to re-zoning and city approval.
"In nine months, we have successfully exited two GEC® projects, sold four ground floor commercial units at GEC® Burnaby Heights,
and sold one out of the three planned towers within Global Education City® (Richmond) as reported in our news release of January
3rd, 2019. These transactions have proven our business model and achieved substantial returns for CIBT and the other investors in
these projects," commented Toby Chu, Chairman, President and Chief Executive Officer of CIBT. "As part of these exits, the
purchasers signed five to ten-year management contracts for GEC Management Limited Partnership to continue its management services
post-transaction. While we are exiting smaller scale projects, we have added larger-scale projects such as Global Education City®
(Richmond) and GEC® Oakridge to our portfolio during the same nine-month period. These transactions allow GEC to continue scaling
our total bed count in rapid pace while increasing rental revenues and monetizing on the appreciated value of GEC® project
holdings. Our ability to acquire new projects while selling certain holdings with high yields, and being retained as GEC® branded
property has not only proved our business model but has also allowed us to take advantage of the latest real estate market slowdown
by acquiring undervalued properties such as GEC® Oakridge."
"While Metro Vancouver is currently experiencing a slowdown in the residential housing market, the rental housing shortage is
considered to be in crisis mode which has prompted continued appreciation in the market value of our GEC® rental real estate
portfolio. Our strategy is to expand our education platform, continue scaling our bed count with our large pipeline of students,
collect attractive rental returns, and finally exit when the next real estate economic cycle returns. We plan to repeat the process
toward achieving our next milestone of $2 billion of GEC® branded properties."
The closing of the purchase of the GEC® Oakridge lands is expected to occur in late August 2019 subject to the satisfactory
completion of all due diligence reviews and the removal or satisfaction of other conditions. During this time, the purchaser will
apply for rezoning and prepare the development and construction plans.
Further to CIBT's news release dated November 1st, 2018, subjects were not removed in connection with the planned purchase of
two parcels of land for the GEC® Langara project. Management feels that GEC® Oakridge is a larger scale project and presents the
opportunity to yield a better return for our investors.
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 the closing of the purchase of the lands for the Project,
the expectation that the demand for rental accommodations will continue to be strong and the expectation that a strong real estate
economic cycle will return in a few years. 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 removal of conditions precedent
under the agreement for the purchase of the lands for the Project, the ability to negotiate and enter into a binding agreement for
the construction of the Project, the ability of GEC Oakridge Limited Partnership to raise the required funds for the Project from
the sale of equity and 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.
SOURCE: CIBT Education Group Inc.
