VANCOUVER, BC / ACCESSWIRE / December 4, 2023 / Global Education Communities Corp ("GECC" or the "Company") (TSX:GEC), (OTCQX International:GECSF) is pleased to report that its subsidiary, GEC Langara Limited Partnership (the "LP"), has agreed to purchase two parcels of land (together, the "Property") at the north-east corner of 48th Avenue and Cambie Street, within a few metres from the Canada Line's Langara - 49th subway station in the heart of central Vancouver.
The Property is located three blocks from Langara College, and future tenants of the Property will be able to easily access the Langara - 49th Canada Line Station, which is approximately a 15-minute subway ride to downtown Vancouver, Vancouver International Airport and the City of Richmond. The Property is fully rezoned and has been issued a development permit, with the building permit approved for issuance. The existing development plan includes a ten-storey concrete highrise tower with 64,000 gross buildable square feet.
On November 8, 2023, the province of British Columbia announced its plan 1 to allow Transit-Oriented Developments (TOD) within 800 metres of rapid transit stations, such as along the Canada Line, to increase density. This proposed policy would allow a substantial increase to the height of the tower to be constructed on the Property.
Accordingly, the LP plans to re-apply to the City of Vancouver and increase the height density. If successful, the tower could accommodate additional tenants compared to the current 10-storey design. The re-application could take up to twelve months, and the construction will take approximately 30 months. The closing date of this purchase is currently scheduled for December 21, 2023.
The LP has also received commitments for a $11 million loan from a commercial lender, $10 million investment by equity, and a subordinated loan from an investor. The LP previously received equity investment of $1.078 million from accredited investors.
Recently, the Federal, Provincial and Municipal governments announced various incentive plans to induce rental housing developments. These incentives include:
- Increased density for Transit-Oriented Developments 1
- Waiver of Federal Goods and Services Tax for market rental properties 2
- Waiver of DCL fees (Development Cost Levy) for market rental properties 3
"Once implemented, these incentives are expected to reduce the development cost and increase potential capacity for all GEC® projects under development. We are excited to restart our development process after nearly three years of industry slowdown due to the pandemic, high inflation and rising interest rates," commented Toby Chu, President, CEO and Chairman of Global Education Communities Corp. "Due to rising interest rates and inflation, many rental developments throughout the province have either slowed down or halted, causing a lack of new rental inventory entering the development pipeline and causing further shortages of housing supplies for renters and students.
"The Company expects that many new international students and immigrants arriving in Metro Vancouver will need rental housing as their new home. GECC expects the shortage of rental inventory in Metro Vancouver to impact the domestic and international education sector, as rental rates will continue to rise yearly. There are 10 GEC® branded locations throughout Metro Vancouver, with eight buildings fully operational and six under development. GECC aims to expedite the completion of more rental projects to provide additional inventory to the student housing community."
- https://vancouver.citynews.ca/2023/11/08/bc-housing-legislation-transit-hubs/
- https://www.cbc.ca/news/canada/british-columbia/gst-plan-renter-relief-1.6972072
- https://bylaws.vancouver.ca/bulletin/bulletin-rental-incentive-programs.pdf
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 owns 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. ("SSCC") (established in 1903), Sprott Shaw Language College ("SSLC"), Vancouver International College Career Campus ("VIC") and CIBT School of Business & Technology Corp. ("CIBT China"). GECC offers over 150 educational programs in healthcare, business management, e-commerce, cyber-security, hotel management, and language training through these schools. In 2022, GECC serviced over 13,000 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, a hotel and education super-centres. Under the GEC® brand, GECH provides accommodation services to 92 schools in Metro Vancouver, serving 3,000 students from 71 countries. The total portfolio and development budget under the GEC® brand is nearly $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 Design 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@GEC®hq.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 expected completion of the purchase of the Property, plans to apply for an increase in the height density of the Property, the expected reduction in the development cost and increase in potential capacity from various government proposed incentive plans, and the Company's objective to expedite the completion of more rental projects. 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, customary risks of the construction industry, unexpected delays or requirements of the applicable municipalities, and the other risk factors identified in the Company's management's discussion and analysis for the fiscal 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.