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Global Education Communities Corp
Symbol GEC
Shares Issued 67,440,040
Close 2024-12-05 C$ 0.225
Market Cap C$ 15,174,009
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Global Education sees international enrolment decline

2024-12-09 16:24 ET - News Release

Mr. Toby Chu reports

GECC PROVIDES YEAR-END REVIEW

Global Education Communities Corp. has provided the following synopsis on its business and corporate finance activities in 2024.

"Fiscal 2024 has been a productive year despite challenges such as high interest rates, high construction costs, government-imposed international student limits and a tight credit market," commented Toby Chu, chairman, president and chief executive officer. "GECC undertook several initiatives to address these challenges."

Overview:

  • Global Education secured short-term fixed-interest loans, gradually replacing various loans financed by Canada Mortgage and Housing Corp. to reduce interest cost.
  • Global Education's school domestic enrolment grew healthily while international enrolment declined. More focus has shifted to the domestic market and those international students already in country.
  • Global Education's domestic tenant base at GEC Living, a division of Global Education City Holdings Inc., grew approximately 150 per cent from 17 per cent to 44 per cent. Domestic students took over vacancies vacated by international students.

Summary of GEC Living's development milestones in 2024:

  • GEC Granville Hotel was sold for $70-million in November, 2023, to increase liquidity and reduce financing costs.
  • GEC Langara purchased land in December, 2023, approved for a 10-storey development. As a result of the provincial government's Bill 42 Transit Oriented Area development policy, application has been made for approval to an increase in the size of the building to 26 storeys.
  • GEC King Edward, which commenced operation in June, 2023, has achieved near-zero vacancy.
  • Stabilized and increased rental incomes were achieved at GEC Burnaby, GEC King Edward, GEC Pearson and GEC Marine Gateway.
  • GEC Viva, which was under renovation for nine months in 2024, is fully operational with limited vacancies.
  • GEC Kingsway commenced operation in September, 2024, with an additional 284 beds added to its portfolio.
  • Eight buildings are fully operational, operating nearly 1,300 beds in metro Vancouver.
  • GEC Oakridge received its demolition permit in December, 2024, and will start demolition in January, 2025.
  • GEC Education Mega Center completed its DP amendment and submitted it to the City of Surrey for approval.
  • GEC CyberCity is in discussions with a major hotel chain that is interested in establishing a presence in Richmond, B.C.
  • Investment and co-operation agreements relating to GEC Oakridge were executed with Pomerleau Capital of Montreal, Que.

Corporate finance activities in late 2023 and during 2024:

  • GEC King Edward completed a CMHC takeout mortgage at reduced interest rates.
  • GEC Oakridge received CMHC approval for $121-million for construction and takeout financing.
  • GEC Burnaby and GEC Pearson submitted mortgage refinancing applications to CMHC in October, 2024.
  • In summary, Global Education subsidiaries completed over $148-million of mortgages and refinancing across the portfolio, with $214-million pending approval in late 2024 or early 2025.

Looking ahead into 2025, Global Education plans to undertake the following activities:

  • Continue to streamline the educational divisions through cost reductions, refocus on its market segments and add new programs;
  • Commence construction at GEC Oakridge;
  • Increase the capital base of GEC Education Mega Center, seek CMHC financing and commence construction;
  • Refinance GEC Burnaby and GEC Pearson;
  • Complete the development application at GEC Langara to increase density and capacity;
  • Stabilize the occupancy rate for GEC Kingsway, which commenced operations in September, 2024;
  • Add new properties through the GEC MLPP initiative (master lease partnership program).

About Global Education Communities Corp.

Global Education is one of Canada's largest education and student housing investment companies focused on the domestic and global education market since 1994. In fiscal 2024, Global Education serviced over 12,500 domestic and international students through its educational, rental housing and recruitment subsidiaries.

Global Education operates business and language colleges, student-centric rental apartments, recruitment centres, and corporate offices at 40 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College Corp. (established in 1903), Sprott Shaw Language College, Vancouver International College, and CIBT School of Business & Technology Corp. Global Education offers over 150 educational programs in health care, business management, e-commerce, cybersecurity, hotel management, emergency paramedic and language training through these schools.

Global Education owns Global Education City Holdings, an investment holding and development company focused on education-related real estate, such as student-centric rental apartments and education supercentres. In fiscal 2024, GECH held nine projects comprising 14 buildings in operations and different stages of development under the GEC brand in metro Vancouver. GECH provided accommodation services to 95 partner schools serving students arriving from across Canada and 79 countries. The total portfolio and development budget under the GEC brand exceeds $1.3-billion.

Global Education also owns Global Education Alliance Inc. and Irix Design Group Inc. 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.

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