Canadian education management company CIBT Education Group Inc (TSX: MBA) has received an undisclosed overseas investment in its serviced apartments project, a Vancouver-based property bought earlier in May for $44 million. CIBT has been appointed manager of the project, which is focused on providing affordable student housing. Founded in 1994, the company owns and operates a network of business, technical and language colleges. It has been a portfolio investment of U.S. private equity firm Camden Partners since 2007.
CIBT Accepts New Investment into Recently Acquired Serviced Apartments Project
Vancouver, British Columbia CANADA, May 29, 2014 (Filing Services Canada via COMTEX) — CIBT Education Group Inc. CA:MBA +1.14% (otcqx international:MBAIF), and its subsidiaries (collectively, “CIBT Group”) are pleased to report the participation of an overseas investor in CIBT Group’s $44 million serviced apartments project (the “Project”) that was announced on May 12th 2014. As a result of the investment, the investor holds approximately 60% of the Project and CIBT Group holds the remainder. In addition, CIBT Group will be paid a fee of $1.485 million for developing and structuring the Project, payable in units of the limited partnership formed for this investment.
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 under the management agreement 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
* Provide hotel management Interns to work at the student apartments at reduced cost while obtaining hotel management experience
“As the supply of affordable student housing is in great shortage, we are not surprised to see such strong investor interest in the Project,” commented Toby Chu, President and CEO, Vice Chairman of CIBT Education Group Inc. “International students are flocking to Canada while Vancouver’s housing rental market remains at 2% vacancy, according to Vancouver Real Estate Board, and demand for affordable student housing is expected to increase steadily in the coming years. Such demand is also supported by the federal government’s stated policy to increase the quota for international students entering Canada by 80% in eight years. By leveraging on CIBT Group’s 20 years of international market experience, an expanding global network, access to over 20,000 international students from within our enrollment system as well as our academic partners, we plan on acquiring, developing and leasing a stream of student hotels and serviced apartment properties in the coming months and years. By accepting co-investment from accredited investors for each project, we expect to remain largely liquid and at reduced risk while we are pursuing our goals. Our vision is to become a dominant player in the student housing business in Canada supported by our 110 year old operating subsidiary, Sprott Shaw College, and other associated and affiliated schools located domestically and abroad.”
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 5,000 students annually. Its education business is operated through Sprott Shaw College (established in 1903), Acsenda School of Management, CIBT School of Business China, and A-Plus 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:
Vice-Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact:
1-604-871-9909 extension 318
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