Business
CIBT Subsidiary Signs Formal Agreement to Acquire the 9th GEC Branded Property
VANCOUVER, BC / ACCESSWIRE / November 1st, 2018 / CIBT Education Group Inc. ("CIBT" or the "...
About this update from Global Education Communities Corp
[{"type":"text","content":"CIBT Subsidiary Signs Formal Agreement to Acquire the 9th GEC Branded PropertyVANCOUVER, BC / ACCESSWIRE / November 1st, 2018 / CIBT Education Group Inc. (\"CIBT\" or the \"Company\") (TSX: MBA, OTCQX International: MBAIF) is pleased to announce the signing of a formal Purchase and Sale Agreement for the purchase by GEC Langara Limited Partnership of two parcels of land to develop a highrise serviced apartment (the \"Project\") near the corner of Cambie Street and 49th Avenue in Vancouver. The Project, named GEC® Langara, is located at the centre of the City of Vancouver and is approximately 20 feet from the Langara SkyTrain station.GEC® Langara is the ninth GEC® branded project and, once constructed, will be the 12th building within the GEC® portfolio. The Project is expected to have a gross building area of approximately 63,000 square feet. The total development budget for this Project, including land, construction, FFE (furniture, fixture & equipment) and financing costs, is approximately $60 million. \"After our successful exit of two GEC® projects and the sale of 4 ground floor commercial units, we have proven our business model to be successful. Since March 2018, approximately $118.5 million of GEC® properties have been monetized, providing liquidity to our limited partnership investors and CIBT\", commented Toby Chu, Chairman, President and Chief Executive Officer of CIBT. \"In addition to these exits, $260 million worth of properties have been added to the GEC® portfolio and new development budgets. These properties are GEC® Pearson in Vancouver and Global Education City® located in Richmond, B.C. While Metro Vancouver is currently experiencing a slow down in the residential housing market, a rental housing shortage continues to be in crisis mode which prompted rapid appreciation in market value of the GEC® real estate portfolio. Regarding financial performance, the exits of GEC® Granville and GEC® Viva resulted in an ROIC (return on invested capital) to the respective limited partners of 138% and 333% respectively. The GEC® Pearson property appreciated in value by $44.6 million, or an increase of 105%, between the time of signing the purchase contract in 2014 and the recent completion of its purchase. This proven track record has allowed us to expand t...