Global Education City

 

Investing in a Hidden $8 Billion Recession-Proof Market

 

CIBT Dominates Growing and Lucrative Foreign Student Housing Market

VANCOUVER, British Columbia, May 20, 2014 (GLOBE NEWSWIRE) — In short order Canada is becoming the third most popular foreign student destination behind the US and UK. Investors should care, why? Mainly because foreign students coming to Canada spent $8 billion in 2010 on tuition alone, excluding housing and collateral spending; more than was spent on unwrought aluminum and the export of helicopters, airplanes and spacecraft to all other countries.

Housing for this group is extremely tight and comes in at about $10,000 per student per year just for housing, if they can find it. Therefore, it is a ‘sellers’ market when it comes to this space. Add to that the January 15^th

2014 announcement by the Canadian Federal Government, which plans to increase the number of foreign students entering Canada from 250,000 to 450,000 in 8 years and compelling revenue growth is virtually assured.

After real estate, education is the largest expense for Asian parents and they have proven that they will spend whatever it takes to give their children—and grandchildren– the greatest learning advantage possible.

“As virtually the only company dedicated to end user housing and lifestyle solutions for foreign students, CIBT represents an extremely interesting investment opportunity,” stated Toby Chu, Vice Chairman, President and CEO of CIBT Education Group (TSX:MBA) (OTCQX:MBAIF) in an exclusive interview with Financial Press. “CIBT plans to finance an ambitious portfolio of real estate by way of public equity financing as well as attract foreign investors to take a sizable position in every new project, bank financing and new immigrant investment money so as to capitalize on the big trend of Chinese money flowing into Vancouver’s real estate markets.”

Given its proximity to the Asian market, Vancouver and BC are preferred destinations for students from China, Hong Kong, South Korea, Japan, and Latin America. As well, due to political unrest, a large component of Middle Eastern students are also choosing Canada for safety, climate and education opportunities. Due to Canadian Immigration law, all tuition must be prepaid before a letter of acceptance is issued, and housing cost is often combined with tuition fee as upfront payment so the revenues are predictable and secure.

CIBT Education Group Inc. is an education management company focused on the global education market since 1994. 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 6,000 students annually. Its education business is operated through Sprott Shaw College (established in 1903) and Acsenda School of Management in Canada, CIBT School of Business and Beihai International College in China, and Global Education Alliance Recruitment Centers in other overseas countries.

CIBT’s Real Estate business is conducted through its investment holding company Global Education City Holdings (GEC). For over 20 years the company has been offering all aspects of education and training to domestic students in North America and foreign students including Western and Chinese accredited business and management degrees, programs in college preparation, healthcare, hotel management and tourism, English language training, junior and high school preparation programs for overseas study, and other career/vocational training.

Recently the real estate business has been noteworthy. The plan is quite simple and so far very successful. The Company either builds or retrofits multi-unit accommodations, which are move in ready within 2 years or 9 months respectively. Most are fully leased up and money in hand prior to opening. In turn, the plan is then to sell them to mutual funds or accredited investors at a profit and move on to the next project. CIBT retains a 20-year management contract to manage the property including filling them with students.

“Our success is a double edged sword, albeit a profitable one,” states Chu. “Given that Vancouver’s student housing market alone is a $1 billion business, we are currently focused here with plans to eventually build businesses that will see our model deployed in other cities in Asia, send North American students overseas and eventually franchise our expertise. Given that students are a known, secure and rapidly growing market in this and other major urban jurisdictions, CIBT is confident of unparalleled growth and building compelling and consistent shareholder value.”

CIBT’s latest real estate foray was the signing of a purchase agreement with a Vancouver based developer for three properties. This project is to be developed into student centric serviced apartments for domestic and foreign students studying in the Lower Mainland. The site will be capable of handling approximately 350 students during the academic season from September to June, and up to 700 students during the summer camp season from July to August. Total development budget is $44 million when fully constructed and furnished. CIBT reported 7 other properties are either under development, or in negotiation for a master lease or outright purchase.

CIBT’s competitive advantages are impressive. Besides having extensive global business and education contacts, management knows how to get maximum return as well as provide culturally relevant and sensitive services to its clientele.  Providing everything from locations near subway stations, transportation hubs to concierge lifestyle services and ESL (English as a second language) training, guardian services for younger students, weekend activity packages, it is apparent that there are significant barriers to entry for any would-be competitor.

With a structure that includes constituent divisions dealing with different types of education, housing rentals and real estate ventures, the Company has pretty much locked up this massive and virtually recession proof market. CIBT trades at $0.33 with a market cap of $21.5 million.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the author’s only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

 

 

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June 2nd, 2014: CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT Group”) is pleased to report that it has signed a Purchase and Sale Agreement with a Vancouver, BC based developer for the purchase of three adjoining properties in the Greater Vancouver area and the development thereon of student centric serviced apartments.  This project is in addition to the $44 million dollar project that was announced on May 12th, 2014.  As with the first project, this project is targeted towards domestic and foreign students studying in the Lower Mainland, and is located within 2 minutes of a Sky-train station.  The project announced on May 12th is an approximate 5 minute walk from the Sky-train station but is larger in scale.

This latest site is also part of Global Education City’s (“GEC”) student housing arm which will be capable of handling approximately 240 students during the academic season from September to June, and up to 480 students during the summer camp season from July to August.  Total development budget is $32.4 million when fully constructed and furnished.  All GEC serviced apartments or hotels will be fully furnished, and will be equipped with state-of-art personal identification system for security access and debit card purposes.  Tailored optional services, such as pre-scheduled housekeeping, daily meal services delivered to the unit,  weekend tour packages, on-site tutoring, airport pick-up and school shuttles are just a few of the many services that will be available at all GEC education themed real estate projects.

“We have been working with international students from 42 countries and owning a large number of schools in three continents for 20 years.  We have learned many important priorities from parents sending their children to study abroad,” commented Toby Chu, President, Chief Executive Officer and Vice Chairman of CIBT Education Group Inc.  “In 2013 alone, we dealt with over 9,000 home stay students per year.  The quality of home-stay families, security issues, safety concerns when commuting to and from school, as well as proper meal plans and weekend activities are some of the many concerns of students’ parents.  Armed with this knowledge and experience, CIBT Group is in an excellent position to address these concerns by establishing a network of high quality, clean and safe serviced apartments and student hotels for students coming to study in Vancouver, thereby eliminating the worries for parents.”

About CIBT Education 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 6,000 students annually. Its education business is operated through Sprott Shaw College (established in 1903) and Acsenda School of Management in Canada, CIBT School of Business and Beihai International College in China, and Global Education Alliance Recruitment Centers in 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, 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 selected elite kindergarten, primary, secondary schools, colleges 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 Chu

Vice-Chairman, President and CEO

CIBT Education Group Inc.

Investor Relations Contact: 1-604-871-9909 extension 318 or Email: info@cibt.net

 

May 12th, 2014: CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT Group”) is pleased to report that it has signed a Purchase and Sale Agreement with a Vancouver, BC based developer to purchase three properties in the Greater Vancouver area.  This project is to be developed into student centric serviced apartments for domestic and foreign students studying in the Lower Mainland.

This site will be part of Global Education City’s (“GEC”) student housing arm.  Global Education City is an education super center planned for the Lower Mainland Vancouver area which is currently awaiting municipal approval.  The site will be capable of handling approximately 350 students during the academic season from September to June, and up to 700 students during the summer camp season from July to August.  Total development budget is $44 million when fully constructed and furnished.

“This latest project site is one of a series of seven education themed real estate projects that are under negotiation or development”, commented Toby Chu, President, Chief Executive Officer and Vice Chairman of CIBT Education Group Inc.  “On January 15th 2014, the Canadian Government announced plans to increase the number of international students entering Canada from the current 250,000 to 450,000 students in 8 years.  This latest initiative will substantially increase the demand for student housing in Greater Vancouver, being one of the most popular international student destinations in the world.  We believe our core business and competency in the global education sector for the past twenty years gives us a unique advantage and international network to fill thousands of serviced apartments and student centric hotels for the Greater Vancouver area.  In 2010, government statistics indicated that there were 100,000 international students living in the Lower Mainland, inclusive of long term and short term international students.  This number will likely double in the coming 8 years coinciding with the latest government plans.  This can be translated into a $2 billion annual revenue sector considering each student is paying approximately $10,000 a year for their housing needs exclusive of tuition and meal costs.  Moreover, there is little substantial organized competition in this sector.  CIBT Group’s primary focus will continue to be education while its peripheral and supporting business will be the education housing business which will provide infrastructure support to its core business.”

About CIBT Education 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 6,000 students annually. Its education business is operated through Sprott Shaw College (established in 1903) and Acsenda School of Management in Canada, CIBT School of Business and Beihai International College in China, and Global Education Alliance Recruitment Centers in 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, 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 selected elite kindergarten, primary, secondary schools, colleges 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 Chu

Vice-Chairman, President and CEO

CIBT Education Group Inc.

Investor Relations Contact: 1-604-871-9909 extension 318 or Email: info@cibt.net

 

Global Education City, more information coming soon!

JOYCE SOO

Sutton Group Seafair Realty
#550, 9100 Blundell Road,
Richmond, British Columbia
V6Y 1K3
Telephone : (604) 273-3155

Freena Wang (Beijing)

Tel: +(86) 13801087331
Email: sales@globalrealestates.net
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CIBT Announcement

March 12th, 2013: CIBT Education Group Inc. (NYSE MKT: MBA and TSX: MBA) (“CIBT Group”) is pleased to announce that its newly formed division, Global Education Alliance (“GEA”), has entered into an agreement with Academy of Holy Angels (“AHA”)……GEC