CIBT Provides Update on One of Its Real Estate Investments in Richmond, BC
CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF) has provided an update on its Atmosphere Project in Richmond, B.C., where its subsidiary, Global Education City (Richmond) Limited Partnership, has encountered financial challenges. On April 1, 2022, the project developer initiated a Companies' Creditors Arrangement Act proceeding to reorganize financially. CIBT is exploring options to increase investment in the project and partner with a local developer for restructuring, citing opportunities in Vancouver's real estate market. The next hearing is scheduled for April 25, 2022.
- CIBT is engaging in discussions to potentially increase its investment in the Atmosphere Project.
- The project has received necessary approvals: rezoning, Development Permit, and excavation completion.
- There is a high demand for real estate in Vancouver, which could benefit the Atmosphere Project.
- The developer's financial troubles may delay project completion and affect CIBT's investment.
- There is uncertainty regarding the outcome of the CCAA proceeding, which could limit CIBT's recovery.
VANCOUVER, BC / ACCESSWIRE / April 8, 2022 / CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF) ("CIBT" or the "Company") provides the following update on one of its real estate investments in Richmond, B.C.
In March 2018, CIBT's subsidiary, Global Education City (Richmond) Limited Partnership, purchased two of the seven buildings to be constructed at the Atmosphere Project. Please refer to the Company's news release of April 3, 2019 for an overview of the proposed Atmosphere Project: https://cibt.net/blog/2019/04/03/cibt-provides-update-global-education-city-richmond-2/.
On April 1st, 2022, the developer and the partners of the Atmosphere Project commenced a Companies' Creditors Arrangement Act proceeding ("CCAA Proceeding") in which they were granted a stay of proceedings so that the Developer may attempt to re-organize its financial affairs. The next hearing is scheduled for April 25th, 2022.
"It is unfortunate that the pandemic has disrupted the financial plans for the developer," commented Toby Chu, Chairman, President and CEO of CIBT. "We are in active discussions with the developer about increasing our investment in the project and establishing a partnership with a local developer to assist in the restructuring of the Atmosphere Project so that it fulfills its original purpose," continued Mr. Chu. "We see excellent opportunities in Vancouver's booming real estate market caused by low supply and high demand. The Atmosphere Project has many positive attributes to fill the market needs quickly with rezoning approvals and Development Permit in place, excavation completed, pre-sale marketing and presentation centre fully operational. If a restructuring involving CIBT is successful, this project could become another flagship project for CIBT's subsidiary, Global Education City Holdings Inc."
The Company will receive additional information about the status of the developer's CCAA proceedings in the coming weeks and provide further updates in due course.
About CIBT Education Group:
CIBT Education Group Inc. is one of Canada's largest education and student housing investment companies focused on the domestic and the global education market since 1994. CIBT owns business and language colleges, student-centric rental apartments, recruitment centres and corporate offices at 45 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College Career Campus and CIBT School of Business. CIBT offers over 150 educational programs in healthcare, business management, e-commerce, cyber-security, hotel management, and language training through these schools. In 2021, CIBT provided educational and housing services to over 10,000 students through its various subsidiaries.
CIBT owns Global Education City Holdings Inc. ("Global Holdings"), an investment holding and development company focused on education-related real-estate such as student-centric rental apartments, hotel and education super-centres. Under the GEC® brand, Global Holdings provides accommodation service to 90 schools in Metro Vancouver, serving 1,500 students from 71 countries. The total portfolio and development budget under the GEC® brand exceed
CIBT also owns Global Education Alliance Inc. ("GEA") and Irix Design Group Inc. ("Irix Design"). GEA recruits international students for many elite kindergartens, primary and secondary schools, colleges and universities in North America. Irix Design is a leading design and advertising company based in Vancouver, Canada. Visit us online and watch our corporate video at www.cibt.net.
Toby Chu
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: info@cibt.net
FORWARD-LOOKING STATEMENTS
Some statements in this news release contain forward-looking information (the "forward-looking statements") about CIBT 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 that the Atmosphere Project could become another flagship project for CIBT's subsidiary, Global Education City Holdings Inc., if a restructuring involving CIBT is successful. Forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the "Risks") that could cause CIBT's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, the possibility that the court ultimately approves a sale of the project that results in prior mortgagees being repaid in whole or in part and Global Education City (Richmond) Limited Partnership being repaid only in part or not at all. Forward-looking statements are based on the beliefs, opinions and expectations of CIBT's management at the time they are made, and CIBT 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. If CIBT updates any forward-looking statement(s), no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements.
SOURCE: CIBT Education Group Inc.
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FAQ
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