Global Education Communities Corp. Formally Adds GEC Kingsway to Its Portfolio

Rhea-AI Summary

Global Education Communities Corp. (GECC) announces the addition of GEC Kingsway to its portfolio through a Master Lease Partnership Program agreement. The property located in Vancouver, B.C. will be operational under the GEC® model by August 1, 2024, with GECC entitled to profit sharing upon property sale.

VANCOUVER, BC / ACCESSWIRE / April 16, 2024 / Global Education Communities Corp. ("GECC" or the "Company") (TSX:GEC)(OTCQX:GECSF) is pleased to report that its subsidiary has signed a formal Master Lease Partnership Program agreement ("MLPP") with a local developer to master lease its property located at 4589 Gladstone Street (corner of Kingsway and Gladstone), Vancouver, B.C. This agreement is valid for five years with an option to renew for five more years. In addition to a discounted lease rate, GECC will be entitled to a future profit sharing in the event of a property sale during the lease period. The possession date for this property is expected to be June 1, 2024, and the property is expected to be fully operational under the GEC® model by August 1, 2024.

About GEC® Kingsway:

GEC® Kingsway will be a six-storey building spanning nearly one city block, with over 103,000 buildable square feet and 78,000 SF residential area. The facility will accommodate 284 beds, with amenities including a fitness centre, student lounge, roof deck patio, and underground parking. Customary to all GEC® branded properties, accommodations at GEC® Kingsway will be fully furnished with kitchen utensils, bedding supplies, fibre optic internet, monitored surveillance, all utilities included, weekly housekeeping and resident caretakers.

Located at the corner of Kingsway Avenue and Gladstone Street, the future home of GEC® Kingsway is on a main thoroughfare, approximately 8 minutes' walk from the Nanaimo SkyTrain station, and within 10 minutes of downtown Vancouver via SkyTrain, where hundreds of public and private institutions are located. In addition, GEC® Kingsway is at the centre of Vancouver with easy access to Metrotown and BCIT in Burnaby, and Vancouver Community College on East Broadway in Vancouver.

Pictures of GEC® Kingsway are available via this link: https://gechq.com/gallery/gec-kingsway/

"Since 2015, we have launched 15 GEC® branded buildings including a downtown hotel, with over 1.43 million square feet of facilities, seven of which are currently in operation and seven under development; the hotel was sold in November 2023" said Toby Chu, Chairman, President and Chief Executive Officer of GECC. "Since the announcement of this property in September 2023, we have received many inquiries from GEC® partner schools, online media, and GECC's 2,000+ agents' network from around the world to pre-book the available beds at this location. We expect to be fully booked by the summer of 2024, with an annual revenue projection of over $5 million from this property."

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 operates 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. (established in 1903), Sprott Shaw Language College, Vancouver International College Career Campus, and CIBT School of Business & Technology Corp. GECC offers over 150 educational programs in healthcare, business management, e-commerce, cyber-security, hotel management, emergency paramedic, and language training through these schools. In fiscal 2023, GECC serviced over 14,277 domestic and international students through its educational, rental housing and recruitment subsidiaries.

GECC owns Global Education City Holdings Inc. ("GECH"), an investment holding and development company focused on education-related real estate, such as student-centric rental apartments and education super-centres. In fiscal 2023, GECH operated fifteen properties under the GEC® brand in Metro Vancouver and provided accommodation services to 92 partner schools serving 3,200 students from 71 countries. The total portfolio and development budget under the GEC® brand exceeds $1.3 billion.

GECC also owns Global Education Alliance Inc. ("GEA") and Irix Design Group Inc. ("IRIX"). GEA recruits international students for elite kindergartens, primary and secondary schools, colleges and universities in North America. Irix is a leading design and advertising company based in Vancouver, Canada. Visit us online and watch our corporate video at www.GEChq.com.

For more information, contact:

Toby Chu
Chairman, President & CEO
Global Education Communities Corp.

Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: info@GEChq.com

FORWARD-LOOKING STATEMENTS

Some statements in this news release contain forward-looking information (the "forward-looking statements") about GECC and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, the statement as to the expected annual revenue from GEC® Kingsway. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the "Risks") that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, national and global economic factors and the other risk factors identified in the Company's management's discussion and analysis for the financial year ended August 31, 2023. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.

SOURCE: Global Education Communities Corp.

View the original press release on accesswire.com

FAQ

What is the name of the subsidiary added to Global Education Communities Corp.'s portfolio?

The subsidiary added to Global Education Communities Corp.'s portfolio is GEC Kingsway.

Where is the property located that is part of the Master Lease Partnership Program agreement?

The property is located at 4589 Gladstone Street (corner of Kingsway and Gladstone), Vancouver, B.C.

When is the possession date for the property under the agreement?

The possession date for the property under the agreement is expected to be June 1, 2024.

What is the expected operational date for the property under the GEC® model?

The property is expected to be fully operational under the GEC® model by August 1, 2024.

What additional benefit does GECC receive in the event of a property sale during the lease period?

GECC will be entitled to future profit sharing in the event of a property sale during the lease period.