CIBT Accepts Additional Investment Into Recently Acquired $32.4M Project
18 Juni 2014 - 3:00PM
Business Wire
CIBT Education Group Inc. (TSX: MBA, OTCQX International:
MBAIF) and its subsidiaries (collectively, “CIBT Group”) are
pleased to report the participation of an overseas investor in CIBT
Group’s $32.4 million serviced apartments project (the “Project”)
that was announced on June 2nd 2014. As a result of the investment,
CIBT Group will hold a minority interest in the Project. In
addition, CIBT Group will be paid a fee of $1.161 million for
developing and structuring the Project.
This is the second project in which CIBT Group has attracted an
investment partner within a 30 day period (see CIBT Group’s news
release of May 29th 2014 for details of the investment in the first
project). Total structuring fees for the two projects reached $2.65
million.
In addition, CIBT Group has been appointed as manager of the
Project for a term of twenty years and will be paid, as a
management fee, a portion of the distributable cash from operations
generated from the Project. The services to be provided by CIBT
Group as manager of the Project will include the following:
- Recruit international students to
reside in the serviced apartments
- Provide landing services, city
orientation, settlement and student support services for those
international students newly arrived to Vancouver
- Manage the day-to-day operations of the
Project including financial management and collection of rents
- Provide various tutoring services
including language and academic programs
- Coordinate after school extracurricular
activities and sightseeing tours for those international students
residing at the serviced apartments
- Provide hotel management Interns to
work at the student apartments at reduced cost while obtaining
hotel management experience
“We are pleased to report that investment in this second of a
planned series of education themed real estate projects by CIBT
Group was again sold-out within a short time frame,” commented by
Toby Chu, President, Chief Executive Officer and Vice Chairman of
CIBT Education Group Inc. “The company continues to seek out
strategic locations to expand our portfolio of education related
serviced apartments and hotel projects throughout the Lower
Mainland. We are planning to acquire additional properties by
partnering with accredited domestic and overseas investors with a
view to establishing as many footprints as possible throughout the
Lower Mainland. In addition to serviced apartments and short-stay
hotels for students, CIBT is seeing a substantial wave of
affordable housing needs for technology workers migrating from
across Canada and the United States to Vancouver as major software
development companies such as Microsoft, Amazon and Sony’s
Imageworks are establishing their development centres in Vancouver
thereby creating tens of thousands of technology related jobs. A BC
Stats report indicated that revenue for British Columbia’s tech
sector rose 3.5% in 2012 to $23.2 billion. Our school subsidiaries
and student housing subsidiaries will be ready to accept this
additional wave of technology students and housing demand growth.
Such growth is expected to reach 200,000 foreign students residing
in the Lower Mainland in the next 8 years.”
About CIBT Group:
CIBT Education Group Inc. is an education management company
focused on the global education market since 1994. Listed in Canada
on the Toronto Stock Exchange and in the U.S on the OTCQX
International, CIBT Group owns and operates a network of business,
technical and language colleges in North America and Asia. CIBT
Group offers cooperative joint programs in 12 countries with
campuses, recruitment offices and training centers enrolling over
6,500 students annually. Its education business is operated through
Sprott Shaw College (established in 1903), Acsenda School of
Management, CIBT School of Business China, and Global Education
Alliance Recruitment Centers in China and other overseas countries.
Through these subsidiaries, CIBT Group offers Western and Chinese
accredited business and management degrees, programs in college
preparation, healthcare, hotel management and tourism, English
language training, English Teacher Certifications, junior and high
school preparation programs for overseas study, and other
career/vocational training. CIBT Group also owns Irix Design Group,
a leading design and advertising company based in Vancouver,
Canada, Global Education Alliance (“GEA”) and Global Education City
Holdings Inc (“GEC”). GEA recruits international students for many
elite kindergarten, primary, secondary schools and universities in
North America. GEC is an investment holding and management company
with a special focus on education related real estate projects in
Canada. Visit us online at www.cibt.net.
For more information contact:
Toby ChuVice-Chairman, President & CEOCIBT Education Group
Inc.Investor Relations Contact: 1-604-871-9909 extension 318 |
Email: info@cibt.net
Forward-looking statements:
Some statements in this news release contain forward-looking
information (the “forward-looking statements”) about CIBT Group and
its future plans. Forward-looking statements are statements that
are not historical facts. The forward-looking statements in this
news release are subject to various risks, uncertainties and other
factors that could cause the company's actual results or
achievements to differ materially from those expressed in or
implied by forward-looking statements. With respect to the
statement in this news release that CIBT Group is planning to
acquire additional properties by partnering with domestic and
overseas investors, these risks, uncertainties and other factors
include, without limitation, uncertainty as to CIBT Group’s ability
to identify additional suitable locations, to negotiate the
purchase of identified properties on favourable terms or at all,
and to negotiate the investment in any additional projects on
favourable terms or at all Forward-looking statements are based on
the beliefs, opinions and expectations of the company's management
at the time they are made, and CIBT Group does not assume any
obligation to update its forward-looking statements if those
beliefs, opinions or expectations, or other circumstances, should
change.
CIBT Education Group Inc.Toby Chu, 1-604-871-9909 ext.
318Vice-Chairman, President & CEOinfo@cibt.net
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