Global Education Communities Corp. Deploys Additional Services to Add Student Beds and Expand Its Portfolio
Vancouver, B.C., September 5, 2023 – Global Education Communities Corp (“GECC” or the “Company”) (TSX: GEC, OTCQX International: GECSF) is pleased to announce that the Company has added a new business segment, called the Master Lease Partnership Program (“MLPP”), to complement its existing operations. The MLPP strategy is intended to expand GECC’s revenue streams, complement its current corporate-owned student housing portfolio without deploying significant capital, and shorten the delivery time for student-bed deployments. The MLPP strategy allows GECC to capitalize on new business opportunities within the Canadian real estate industry that have arisen as a result of the current state of the housing shortage in Metro Vancouver and to drive further growth.
To deploy the MLPP strategy, GECC is discussing with several developers to master-lease over 250,000 GBSF of residential rental facilities for five to ten years, adding approximately 800 beds to GECC’s growing portfolio of 1,500 beds in Metro Vancouver. The facilities under review by GECC will be brand-new with a possession date of less than six months. These developers started developing and constructing rental buildings several years ago and are no longer interested in operating rental properties in today’s environment, thus creating an opportunity for the MLPP.
“This partnership allows the developer to focus on construction and development instead of overseeing the daily operations of a rental property,” commented Toby Chu, President, CEO and Chairman of Global Education Communities Corp. “With a strong infrastructure, 30 years of experience in the education sector, complemented by nine years of student-housing experience, and supported by an expansive network of 2,000 agents globally, GECC is well-positioned to fill the rental property expeditiously and manage the student rental operations efficiently.”
Toby added, “Due to the current housing crisis in Vancouver, we noticed the urgent need to rapidly and consistently deploy additional beds. However, the current development and construction cycle often takes five to seven years. The MLPP strategy provides GECC immediate access to new inventory in the development pipeline by partnering with several developers. In recent years, developers have been discouraged by rent control policies disproportionate to the rising construction, inflation and interest costs, prompting developers to dispose of their rental inventory at a discount. At the same time, potential buyers are scarce due to rising interest rates and underwhelming investment returns. GECC offers developers a solution which allows them to defer their need to sell and instead collect reasonable rents.”
GECC’s education platform annually educates over 10,000 students via its subsidiaries, Sprott Shaw College, Sprott Shaw Language College and Vancouver International College. GECC’s student housing subsidiary, GEC® Living, provides fully furnished rental facilities to over 3,000 domestic and international students from 71 countries attending 92 colleges and universities across Metro Vancouver. GEC Living’s student-housing platform comprises a reservation team, housekeeping and quality assurance staff. By adding value to our services, GECC combines the education revenue with rental income, supported by over 640 staff. Our infrastructure maximizes the economy of scale and can handle a large student housing population.
GECC is one of Canada’s largest education and student housing investment companies focused on the domestic and global education market since 1994. GECC owns business and language colleges, student-centric rental apartments, recruitment centres and corporate offices at 41 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College Corp. (“SSCC”) (established in 1903), Sprott Shaw Language College (“SSLC”), Vancouver International College Career Campus (“VIC”) and CIBT School of Business & Technology Corp. (“CIBT China”). GECC offers over 150 educational programs in healthcare, business management, e-commerce, cyber-security, hotel management, and language training through these schools. In 2022, GECC serviced over 13,000 domestic and international students through its educational, rental housing and recruitment subsidiaries.
GECC owns Global Education City Holdings Inc. (“GECH”), an investment holding and development company focused on education-related real estate such as student-centric rental apartments, a hotel and education super-centres. Under the GEC® brand, GECH provides accommodation services to 92 schools in Metro Vancouver, serving 3,000 students from 71 countries. The total portfolio and development budget under the GEC® brand is nearly $1.3 billion.
GECC also owns Global Education Alliance Inc. (“GEA”) and Irix Design Group Inc. (“IRIX”). GEA recruits international students for 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.GEChq.com.
For more information, contact:
Chairman, President & CEO
Global Education Communities Corp.
Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: info@GEC®hq.com
Some statements in this news release contain forward-looking information (the “forward-looking statements“) about GECC and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, the expected success of the Company’s new MLPP strategy. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the “Risks”) that could cause the Company’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, the Company’s ability to reach agreement with developers on the terms of master leases, national and global economic factors, customary risks of the construction industry, unexpected delays or requirements of the applicable municipalities, and the other risk factors identified in the Company’s management’s discussion and analysis for the interim period ended May 31, 2023. Forward-looking statements are based on the beliefs, opinions and expectations of the Company’s management at the time they are made, and the Company 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.