CIBT: 5 Global Education City Buildings & Counting
Over 12,000 students enrolled each year
CIBT Education Group is a TSX listed company and a major player in the global education market since 1994. With hundreds of public and private school partners, and a network of corporate owned business and language colleges in North America and Asia, CIBT enrolls over 12,000 students every year, and have access to another 20,000 international students from its network of partner schools and recruitment agents from around the world. According to US News, in 2017, Canada became the best country in the world for education, ahead of the U.S. and United Kingdom. International students coming to study in Canada has grown 119% from 2010 to 2017.
In addition, many technology firms such as Microsoft, Amazon, Yahoo, Facebook, Sony Imageworks and Alibaba are rapidly expanding their presence in Vancouver. Since 2016, Vancouver’s vacancy rate has dipped below 0.5 percent causing serious issues for domestic international students coming to study in Vancouver. In twenty-fourteen , CIBT Group expanded its core business of education to include student residences through its real-estate arm, GEC – Global Education City Holdings. Since then, CIBT’s student housing portfolio and development budget surpassed $1.2 billion dollars and continues to grow at a double-digit rate.
Investors in Global Education City Holdings have the potential to earn double digit return on rental income, and substantial return on equity to the tune of 100 plus percent cash on cash within 3 to 5 years. These assets have been acquired and built with higher density, located near train stations and transport hubs, and include furniture and amenity services, with housing-keeping and security services on site. They also arrange fun weekend excursion packages and hot meals.
Since mid 2018, five GEC buildings are fully operational, and 7 more buildings are under development. CIBT plans to add two projects per year at a cost of $50 to 100 million per project. The next game changer is the Education City and Education Mega Centre, which will be the first of its kind in North America. These Education Cities will have a variety of schools, as well as shared auditoriums, electronic library, IT center, job placement agencies, and a cafeteria. These shared facilities, along with serviced apartments and hotels for students and teachers, are designed to help share costs across the various schools and bring in extra revenue.
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