Business
Global Education Communities Corp. Subsidiary Completes Sale of GEC Granville Suites Hotel for Approximately $70 Million
VANCOUVER, BC / ACCESSWIRE / November 28, 2023 / Global Education Communities Corp. (" GECC " or...
About this update from Global Education Communities Corp
[{"type":"text","content":"Global Education Communities Corp. Subsidiary Completes Sale of GEC Granville Suites Hotel for Approximately $70 MillionVANCOUVER, BC / ACCESSWIRE / November 28, 2023 / Global Education Communities Corp. (\"GECC\" or the \"Company\") (TSX:GEC),(OTCQX International:GECSF) is pleased to announce that GEC Granville Limited Partnership has sold GEC® Granville Suites Hotel for gross proceeds of approximately $70 million. The transaction was completed on November 28, 2023.GEC® Granville Suites Hotel was initially acquired for $39 million plus closing costs in 2015 and generated annual revenue of $4.9 million. The original news release from 2015 is available here: https://gechq.com/blog/2015/11/19/cibt-subsidiary-expands-its-student-housing-portfolio-in-downtown-vancouver/. After eight years of management under the GEC® brand, GEC® Granville Suites Hotel's annual revenue reached $8.75 million, an increase of 79%.The property value also increased by 79% to $70 million from $39 million, despite the impacts of the COVID-19 pandemic, which led to the border shutdown for nearly two years, inflation, rising interest rates, and other challenging economic conditions.\"We are pleased with the sale after eight years of operations,\" commented Toby Chu, Chairman, President and CEO of GECC. \"With the sale of this asset, GECC management will focus on expanding our student-housing portfolio, allocating more resources to our GEC® Living platform (www.gecliving.com), supported by our significant educational operations, which includes Sprott Shaw College® (since 1903), Sprott Shaw Language College, and Vancouver International College. GECC's share of the cash proceeds from the transaction will be deployed to other GEC® projects. Recent real estate market conditions have presented many interesting opportunities for potential acquisitions below market value.\"About GECC:GECC is one of Canada's largest education and student housing investment companies focused on the domestic and global education market since 1994. GECC owns business and language colleges, student-centric rental apartments, recruitment centres and corporate offices at 41 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College Corp. (\"SSCC\") (established in 1903), Sprott Shaw Language College (\"SSLC\"), Vancouver Interna...