CIBT Completes $32 Million Mortgage Re-Financing
Vancouver, B.C., July 13th, 2016 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company”) is pleased to announce the completion of a $32 million mortgage re-financing of one of the GEC branded properties (the “Property”) located in downtown Vancouver.
This Property was acquired in January 2015 by a Limited Partnership managed by Global Education City Management Corp., a wholly owned subsidiary of CIBT. The purchase price for the Property was $29.5 million. After a year of renovation and re-design efforts, over 110 student beds were created and fully leased out to students attending various schools in Metro Vancouver. Domestic and international students attending Emily Carr University, University of British Columbia, Simon Fraser University, Kaplan, Capilano University, Sprott Shaw College and a number of ESL schools are currently staying at this GEC property.
The Property is near completion of the final phase of its renovation which will provide 220 beds in total. Occupancy rate for the Property has been a steady 100% of available beds since acquisition in 2015. Factoring in current and future income as well as current market value for the area, the appraised value for the Property as of April 21st 2016 was $54.1million, an increase of $24.6 million over the acquisition price within 14 months, or an increased value of $18.6 million after factoring in $6 million of renovation costs. With progressive developments on budget and identifiable results, the interest rate for the re-financing has been reduced.
“We are very pleased with the return on investment thus far in this Property,” commented Toby Chu, President and CEO, Vice Chairman of CIBT Group. “We are also encouraged with the success we have had filling our pipeline of all GEC branded properties that are in operations today. The result has been an increase in yield for our investors and a major driving force in our increased portfolio value. Our goal is to continue to increase our stake in each one of them over time with the goal of delivering higher value for our shareholders. We are especially proud of our ability to provide a safe, clean and convenient place for international and domestic students to live in a city with less than 1% vacancy rate, while they are pursuing their education in Metro Vancouver. I look forward to updating our investors with more exciting progress over the coming quarters. “
CIBT also reports that it will resume purchases under its normal course issuer bid (the “NCIB”), which CIBT reported in its news release of May 2, 2016 had been suspended. Details of the NCIB were announced in CIBT’s news release of February 25, 2016.
About CIBT Education Group:
CIBT Education Group Inc. is an education management company focused on the global education market since 1994. Listed in Canada on the Toronto Stock Exchange and in the U.S. on the OTCQX International, CIBT owns and operates a network of business, technical and language colleges in North America and Asia. CIBT offers cooperative joint programs in 12 countries with campuses, recruitment offices and training centers enrolling over 8,300 students annually. Its education business is operated through Sprott Shaw College (established in 1903), Acsenda School of Management, Vancouver International College, Vancouver International College, CIBT School of Business China, and Global Education Alliance Recruitment Centers at various overseas countries. Through these subsidiaries, CIBT offers recognized and approved business and management degrees, programs in college preparation, healthcare, hotel management and tourism, English language training, English Teacher Certifications, junior and high school preparation programs for overseas study, and other career/vocational training. CIBT also owns Irix Design Group, a leading design and advertising company based in Vancouver, Canada, Global Education Alliance and Global Education City Holdings Inc. Global Education Alliance recruits international students for many elite kindergarten, primary, secondary schools and universities in North America. GEC is an investment holding and management company with a special focus on education related real estate projects in Canada. Visit us online at http://www.cibt.net, www.studenthotel.ca, and watch our corporate video at http://cibt.net/about/
Toby Chu
Vice-Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact:1-604-871-9909 extension 318 | Email: info@cibt.net
FORWARD-LOOKING STATEMENTS:
Some statements in this news release contain forward-looking information (the “forward-looking statements”) about CIBT Education Group Inc. and its future plans. Forward-looking statements are statements that are not historical facts. 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 obtaining all necessary regulatory approvals. 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.