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CIBT Subsidiary Plans to Raise $60 Million Equity for Construction of GEC Education Mega Center
VANCOUVER, BC / ACCESSWIRE / March 2, 2021 / CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF...
About this update from Global Education Communities Corp
[{"type":"text","content":"CIBT Subsidiary Plans to Raise $60 Million Equity for Construction of GEC Education Mega CenterVANCOUVER, BC / ACCESSWIRE / March 2, 2021 / CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF) (\"CIBT\" or the \"Company\") reports that its subsidiary, GEC Education Center Limited Partnership, plans to raise total equity of $60 million to fund the construction of GEC Education Mega Center® (the \"Project\"). The financing of the Project is expected to be progressive in that the offering price of each unit offering will increase in phases consistent with the construction progress.\"GEC Education Mega Center® represents one of our biggest flagship projects and has received much interest from the real estate investment communities both domestic and abroad. During the past 18 months and amid the pandemic, CIBT and its subidiaries successfully completed nearly $33 million in equity and convertible-debt financing, and received over $0.5 billion in mortgage financing between 2015 - 2020. These experiences and contacts have led us to discussions with several investment groups concerning potential equity investments in the Project ranging from $5 million to $30 million per party. Also, CIBT plans to participate in this financing to increase CIBT's interest in the Project,\" commented Toby Chu, Chairman, President, and Chief Executive Officer of CIBT. \"We will continue to finalize the remaining procedures in the coming months to acquire the Development and Building Permits. Demolition of the building previously occupying the site is completed.\"About GEC Education Mega Center®:A subsidiary limited partnership of CIBT acquired the Project site in downtown Surrey on August 30, 2019. The Company expended substantial efforts through several value-engineering exercises to reduce costs and increase efficiencies. The Project received approval from Surrey's Urban Design Panel in December 2020, Public Hearing 1 and 2 approval on February 8, 2021, and Public Hearing 3 approval on February 22, 2021. The total purchase price was $22.6 million, excluding closing costs. An appraisal report by an independent appraiser dated August 31, 2020, valued the property at $55.37 million without, given the date of the report, factoring in the approvals we received from September 2020 to February 2021, which increased the land use density from 0.4x to 9...