Business
CIBT Reports Completion of Property Financing and Mortgage Renewals of over $80 Million by Subsidiary Limited Partnerships
Vancouver, British Columbia--(Newsfile Corp. - September 9, 2019) - CIBT Education Group Inc. ...
About this update from Global Education Communities Corp
[{"type":"text","content":"CIBT Reports Completion of Property Financing and Mortgage Renewals of over $80 Million by Subsidiary Limited PartnershipsVancouver, British Columbia--(Newsfile Corp. - September 9, 2019) - CIBT Education Group Inc. (TSX: MBA) (OTCQX: MBAIF) (\"CIBT\" or the \"Company\")  is pleased to report that three of its subsidiary limited partnerships (the \"LPs\") have completed four property financings and mortgage renewals over the past 10 weeks. The LPs are GEC King Edward II Limited Partnership, GEC Granville Limited Partnership and GEC Education Mega Center Limited Partnership. The total value of property financing and mortgage renewals upon completion exceeds $80 million. The property financing funds were raised through an acquisition loan for GEC Education Mega Center Limited Partnership. The other LPs completed their respective mortgage renewals at discounted interest rates, and the Company anticipates a substantial decrease in finance costs in the future.\"Q4 of fiscal 2019 was a busy but productive quarter for us at CIBT,\" commented Toby Chu, Chairman, President and Chief Executive Officer of CIBT. \"We're glad to have executed all these transactions within a short time frame while completing the acquisition of the GEC Education Mega Center® property, and we are especially pleased that there will be a substantial reduction in finance costs under the mortgage renewals.\"According to the July 2019 edition of the Goodman Report(*1), proposed rental construction in Vancouver dropped 29% in two years, while new residents to Vancouver are increasing by approximately 35 to 40,000 annually. A number of the new residents are renters, and the gap between supply and demand is widening rapidly which will impact the rental rate and valuation of rental properties in the coming years. For these reasons, we plan to embark on a number of exciting projects in our pipeline in fiscal year 2020,\" continued Toby Chu. \"The construction of GEC® Richmond, which has a budget of $109 million, started in August 2019 and the construction of GEC® King Edward is set to begin this month. For the new fiscal year commenced on September 1st, we expect to complete the rezoning applications for two other sizable projects GEC Education Mega Center® in Surrey and GEC® Oakridge in Vancouver, which has a budget of $250 million and $106...