CIBT Subsidiary Completes the Acquisition of the 15th and 16th GEC(R) Branded Buildings for $48.5 Million

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[{"type":"text","content":"CIBT Subsidiary Completes the Acquisition of the 15th and 16th GEC(R) Branded Buildings for $48.5 MillionVANCOUVER, BC / ACCESSWIRE / October 27, 2020 / CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF) (\"CIBT\" or the \"Company\") is pleased to announce that its newest subsidiary limited partnership, GEC® Marine Gateway Limited Partnership (\"Project 11\"), has completed the acquisition of two residential rental buildings collectively called GEC® Marine Gateway (\"MC1 and MC2\") located at the corner of Cambie Street, West 64th Avenue and South West Marine Drive in Vancouver.The cost of the acquisition is $48.5 million before closing costs. The equity raise was oversubscribed at $19.33 million, with aggregate mortgage financing of $37.15 million. Approximately $34.13 million was advanced at an annual interest rate of 1.88% with a ten-year term. According to the latest appraisal report by an independent and certified appraiser dated August 31st, 2020, the current value for MC1 and MC2 combined is approximately $61 million. The two properties are substantially leased out, generating robust cash-flow returns.The GEC® portfolio, which includes projects in operation and under development, now comprises 11 locations, 16 buildings and approximately 1.5 million square feet. The portfolio value, including the construction budget for projects under development, is close to $1.5 billion.\"We are excited to add this acquisition to our real estate portfolio, which has been growing exponentially since GEC®'s inception in 2015,\" said Toby Chu, Chairman, President and CEO of CIBT Education Group. \"With a combination of historically low interest rates and a discounted acquisition cost on top of the fact the buildings are fully operational and at near-full capacity, MC1 and MC2 will provide immediate cash flow. Over time, student-centric elements will be added to the two buildings to enhance their value proposition to our existing tenants. Moving forward, we will continue to operate these buildings as rental apartments, increase the density and occupancy rate, and increase revenue, expected to result in significant returns for our shareholders.\"About GEC® Marine Gateway - MC1 and MC2:Constructed in 2016, MC1 and MC2 comprise two concrete, four and six-storey residential buildings. The two buildings have 110 units comb...

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