VANCOUVER, May 21, 2019 /CNW/ - CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) ("CIBT" or the "Company") is pleased to provide the following updates relating to its Education Mega Center® project in Surrey, B.C.
By November 6th, 2017, GEC Education Mega Center® ("EMC") had received Advisory Design Panel and first, second and third reading approvals by Surrey City council. The meeting minutes of Surrey City council are available at www.surrey.ca/bylawsandcouncillibrary/MIN_RCPH_2017_11_06.pdf. Since the granting of these approvals, the Company has been working with the developer to complete the review and negotiation on a series of legal documents, usage agreements, as well as an increasing development cost and construction budget.
After nearly two years of working with project engineers, architects, construction professionals and a series of value-engineering efforts, the Company and the developer have executed a third amendment (the "Third Amendment") to the original Purchase and Development Agreement that was signed on May 2nd, 2017. The Third Amendment modified certain business terms and provided for a modified design of EMC. The modified design allowed the height and square footage of the building to be modestly reduced, with the goal of constructing a within-budget and higher efficiency building.
EMC was originally designed as a high-rise with 55 floors, 550,000 square foot concrete mixed-use tower with schools, offices, hotels and market rental apartments. The modified design will result in a slightly shorter building and proportionately reduced square footage. By reducing the building height and square footage, complemented by value engineering, it is expected that there will be a reduction in the overall construction cost of the EMC project from that originally forecasted, and the Company anticipates meeting the original budget of approximately $275 million.
The Third Amendment also provides that GEC Education Mega Center Limited Partnership will acquire title to the land on or before August 15th, 2019 for $22.6 million or $41 per buildable square foot. As a comparison, a property adjacent to the EMC project was sold for $106 per buildable square foot in December 2018.
In the coming months, the Company will work closely with the developer to complete the value-engineering process as soon as feasible, re-apply to the City of Surrey with an amended application and seek updated approvals expeditiously.
About the Education Mega Center®:
GEC Education Mega Center® is being re-designed to accommodate over 900 residential tenants, commercial spaces for 5 – 10 schools and plenty of amenities. In addition to serving the education community located within GEC Education Mega Center®, the building will also serve students attending neighbouring academic institutions such as Simon Fraser University (Surrey) campus and Kwantlen Polytechnic University at the Surrey Civic Plaza. These facilities are conveniently located across the street from the GEC Education Mega Center® site. Also, Douglas College Surrey Training Centre and Sprott Shaw College (Surrey) are located within 1.5KM from the GEC Education Mega Center® site.
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.
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, statements about plans for the proposed Education Mega Center® project in which a subsidiary of CIBT has invested. The 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 of GEC Education Mega Center Limited Partnership to raise equity investment and secure other required funding to acquire the project, usual construction risks, the ability to obtain all required municipal approvals, and the ability of the relevant limited partnerships in which CIBT is invested to enter into and complete exit transactions. 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.
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