CIBT’s Flagship Education Super Center and Mega Center Projects Raise $17.5M
January 10th, 2017, Vancouver, BC: CIBT Education Group Inc. (“CIBT”) (TSX: MBA, OTCQX International: MBAIF) is pleased to announce that $17.5 million in Phase 1 investment capital has been received for the development of the GEC Education Super Center and GEC Education Mega Center projects.
Subscription funds of $11.175 million have been received for the Phase 1 equity financing of GEC Education Super Center Limited Partnership (the “Super Center LP”). Subscription funds of $6.325 million have been received by GEC Education Mega Center Limited Partnership (the “Mega Center LP”). The total placement was over-subscribed by $0.5 million. The Super Center LP and Mega Center LP will commence their respective Phase 2 financings totaling $71 million immediately with target closings by the fall of 2017. The total combined development budget for GEC Education Super Center and GEC Education Mega Center is $410 million.
CIBT is entitled to receive development fees in connection with the GEC Education Super Center and GEC Education Mega Center projects, with such fees being paid as the Super Center LP and the Mega Center LP are funded. To date, CIBT has received approximately $4.36 million in development fees in connection with these projects. A CIBT subsidiary also holds limited partnership units of both the Super Center LP and the Mega Center LP.
“We are pleased with the overwhelming response both our flagship projects have received during this crucial Phase 1 raise,” commented Toby Chu, President and CEO, Chairman of CIBT Group. “Our aim since the beginning of our student housing business has been to develop the province’s most comprehensive and modern student housing experience supported by our education platform with 27 campuses, offices and recruitment centres in Canada and abroad. With the GEC Education Super Center and GEC Education Mega Center projects commencing development, in addition to the existing portfolio of GEC serviced apartments and hotel properties, we have solidified ourselves as BC’s leading provider of student accommodations.
“As we continue to reach new milestones for each project, we expect more stakeholders to become enticed by the value proposition we have created,” continued Toby Chu. “British Columbia remains a safe and highly sought-after destination for both domestic and international students to come and pursue their education, creating an unprecedented demand for student housing that has not been met with existing infrastructure. With the pipeline of projects we have in place, in particular both GEC Education Super Center and GEC Education Mega Center, we aim to match this demand and provide students with safe, clean and convenient housing that is affordable and designed for the academic environment.”
Photos of various GEC properties and renderings of GEC Education Super Center and GEC Education Mega Center can be viewed here: cibt.net/news/gec-photos.php
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 & language colleges, student housing properties, recruitment centers and corporate offices at 34 locations in Canada and abroad. Total annual enrollment for the group exceeds 8,000 students. Its education providers include Sprott Shaw College (established in 1903), 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 and vocational programs. CIBT’s property investments are owned by Global Education City Holdings Inc., an investment holding and management company focused on developing education related real estate such as student hotels, serviced apartments and education super centers. CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). GEA recruits international students for many elite kindergarten, primary & secondary schools, colleges and universities in North America. Irix Design is a leading design and advertising company based in Vancouver, Canada. Visit us online at http://www.cibt.net, www.studenthotel.ca, and watch our corporate video at http://cibt.net/about/
For more information contact:
Toby Chu
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 310 or | 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 and in this news release includes the statement as to the amount and target closing date of the Super Center LP and Mega Center LP Phase 2 financings. 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 whether subscriptions to complete the planned Phase 2 financings will be received within the time anticipated or at all. 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.