CIBT Reports Completion of GEC Pearson Acquisition for $42.5 Million

August 28, 2018

Vancouver, BC August 28th, 2018 – CIBT Education Group Inc. (“CIBT” or the “Company”) (TSX: MBA, OTCQX International: MBAIF) is pleased to report the completion of the purchase of GEC® Pearson, one of the GEC® new construction projects. Global Education City Management Corp. (“Global Management”) took possession of the building on behalf of GEC Pearson Limited Partnership on August 27th, 2018 and commenced operations immediately.

GEC® Pearson was purchased for a total of $42.5 million, with the acquisition process beginning in May 2014.  The most recently appraised value for this project has increased to $87.1 million, which represents an appreciation of $44.6 million, or 105%, since May 2014.  The total combined cash investment by CIBT and two other limited partners was $12 million.  Based on the current appraised value of $87.1 million less bank financing, the total return for the $12 million investment is approximately $38 million, which represents a 4-year return on invested capital (ROIC) of 317%,  or an effective return of 71.4% per year.  CIBT owns 38.5% of GEC Pearson Limited Partnership.  Global Management is the manager of GEC® Pearson, and another CIBT subsidiary is the general partner of GEC Pearson Limited Partnership.  Total recurring rental revenue to be generated from this location is expected to be approximately $4.5 million per year.

“We are very pleased to see the value of this project increase by 105% and further yield a significant return for CIBT shareholders and the other limited partnership investors”, commented Toby Chu, President, CEO, and Chairman of CIBT Education Group. “More importantly, the addition of another 320 beds to the growing GEC® portfolio of student housing in the Greater Vancouver Area allows us to supply the growing demand and address a fraction of the supply shortage.  We will continue to aggressively and strategically expand the GEC® footprint by acquiring attractive assets that will generate strong long-term returns and growth rates for our shareholders.”

About GEC® Pearson:
GEC® Pearson consists of two concrete and wood framed six-storey residential apartment buildings with all furniture, fixture, kitchen utensils,  beds, linens and other day-to-day amenities included.  Also provided are internet WiFi, NetFlix, 24/7 video surveillance of all public areas, an on-site caretaker and weekly housekeeping.  Conveniently located near the Marine Drive SkyTrain Station, GEC® Pearson is one station from Langara College, three stations from the Vancouver International Airport, three stations from Kwantlen Polytechnic University’s Richmond Main Campus, and six stations from Downtown Vancouver which is home to hundreds of language schools, colleges and universities.

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

Toby Chu
Chairman, President and Chief Executive Officer
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email:

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 as to the expected total recurring rental revenue to be generated from GEC® Pearson,  that the GEC® footprint will be further expanded and that strong long-term returns and growth rates will be achieved.  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, that the vacancy rate and rental rates of GEC® Pearson will be as forecast by management and that management will be successful in achieving strong long-term returns from student housing investments.  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.

Request Info

Request Info Today!

If you have any general inquiries, please fill out this simple form and someone from our team will get back to you shortly!

Inquire today