CIBT Subsidiary Closes on GEC Oakridge Land Purchase

Vancouver, B.C., March 17, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) ("CIBT" or the "Company") is pleased to report that its subsidiary, GEC Oakridge Acquisition Limited Partnership has completed the purchase of three parcels of land designated for the GEC Oakridge project (the “Project”). The total purchase price for the three parcels of land was $30.3 million, excluding closing costs and property transfer tax. 

During the past year, GEC Oakridge continued to complete its rezoning process with the City of Vancouver, on schedule.  The Project will be a 18 storey concrete residential rental tower with the capacity to accommodate up to 475 occupants.  GEC Oakridge is located across the street from a significant development at the Oakridge Shopping Centre.  Most importantly, the location is a one-minute walk to the Oakridge subway station, less than a ten minute walk to the Langara Community College, three subway stations to the Vancouver International Airport, and four subway stations to downtown Vancouver.  There are hundreds of schools, colleges and universities located in downtown Vancouver, a popular area for international students.  The development is expected to be completed by 2023.

“We are pleased to have taken ownership of the three parcels of land under the GEC real estate portfolio,” commented Toby Chu, Chairman, President and CEO of CIBT Group.  “The purchase price for all three parcels was $30.3 million while the latest appraised value exceeds $49 million due to the development value added by the Company and the bonus density assigned.  The total development budget for the GEC Oakridge project is approximately $103 million.  Our goal is to obtain full rezoning and development approval within the year 2020 so that construction may start immediately thereafter.  This new facility will be able to provide additional and much needed rental accommodation to nearly five hundred occupants.”

“The COVID 19 virus outbreak is affecting many families, including students coming to study in Vancouver, both domestic and international. The tuition revenue from our schools will likely be deferred but not cancelled,” continued Toby Chu. “Understandably, many homestay parents are cancelling reservations from students due to health concerns.  However, such action is causing further stress for students looking for a place to live when Metro Vancouver’s vacancy rate is at 1%.   Our real estate subsidiary, Global Education City Management Inc., has been working tirelessly to take-on these new bookings while maintaining a rigid health check protocol.  As of today, all GEC facilities are occupied, some at near full capacity due to extensions to stay in Canada compounded by additional demand from homestay family cancellations. We will continue to closely monitor the development of the epidemic and assess its impact on our operations, taking all reasonable steps to maintain a safe, clean and healthy environment for our students to study and live and our staff to work.