VANCOUVER, BC / ACCESS Newswire / May 14, 2025 / Global Education Communities Corp. ("GECC" or the "Company") (TSX:GEC)(OTCQB:GECSF) today announced significant advancements across its portfolio. The Company is pleased to provide the following updates:
Construction Commences on Landmark GEC® Oakridge Development
GECC is pleased to announce the official commencement of construction on its highly anticipated GEC® Oakridge project. This flagship project, which will feature the latest GEC® fifth generation design, is strategically located in the heart of Vancouver across the street from the Oakridge Shopping Centre at Cambie Street and West 42nd Avenue. The Oakridge project has secured $124 million in CMHC-sponsored construction financing. This financing will convert into a 40-year mortgage upon completion under the CMHC-sponsored financing program.
Excavation for the project began in February 2025 and construction is now in full swing, with an estimated timeline of approximately 24 months. Upon completion, GEC® Oakridge will offer a capacity of 450 occupants, projected to generate over $8 million in rental revenue at full occupancy. Pictures of GEC® Oakridge are available at: https://gechq.com/gallery/gec-oakridge/
To facilitate this ambitious project, GECC has established key institutional collaborations, partnering with Pomerleau Capital of Montreal, Quebec in November 2024, and its wholly-owned subsidiary, ITC Construction Group, in February 2025. These partnerships strategically integrate development, construction, investment, and operations under the GEC® brand, specifically focused on the student housing sector.
Substantial Interest Rate Reduction for the Portfolio
GEC® Pearson has secured a $42.5 million CMHC-sponsored mortgage financing program. This favourable financing includes a significant reduction of over 50% in the mortgage interest rate, effective mid-April 2025. This decrease is expected to substantially lower finance costs and enhance returns for GECC shareholders.
Across the portfolio, GECC has secured an aggregate of $253.32 million in CMHC-sponsored mortgages and construction loan which reduces the interest expense in today's high interest rate environment.
Partnership Agreement Finalized for GEC Education Mega Center®
GECC has successfully completed partnership agreements with Pure Group of Companies ("Pure Group") for the GEC Education Mega Center® ("EMC"). This collaboration will see Pure Group co-developing EMC by attracting institutional capital into their REDT (real estate development trust), with ITC Construction undertaking the construction. Upon completion, GEC will manage the property under its established brand. The total budget for the EMC project is approximately $330 million.
"This marks an exciting new chapter for GECC as we strategically expand our efforts and resources on the high-growth potential of our student housing portfolio," commented Toby Chu, Chairman, President and CEO of GECC. "Over the past twelve months, we have cultivated a strong network of esteemed investment and highly experienced construction partners. These collaborations will enable us to pursue significant real estate opportunities with a more agile and capital-efficient model. By allocating responsibilities based on each partner's expertise, GECC will concentrate on what we do best: acquiring, developing, and operating premium student housing, leveraging our extensive 33 years of experience in the education sector. Our partners will bring their specialized knowledge to the investment, financing, and construction aspects of each joint venture project."
About GECC:
Since 1994, GECC has established itself as a leading player in the Canadian education and student housing sector, serving both domestic and international markets. GECC offers a comprehensive range of services, encompassing business and language colleges, student-centric rental apartments, recruitment services for educational opportunities, and a network of campuses and offices across 40 locations.
Through its subsidiaries, GECC provides a holistic educational experience for over 12,500 students annually. These subsidiaries include established institutions like Sprott Shaw College (founded in 1903), Sprott Shaw Language College, Vancouver International College, and CIBT School of Business & Technology. These subsidiaries offer programs covering healthcare, business, and technology.
GECC also addresses student housing needs through its subsidiary, Global Education City Holdings Inc. ("GECH"). GECH focuses on developing and managing student-centric rental apartments and education super-centres in Metro Vancouver, boasting a portfolio exceeding $1.3 billion, including operational properties and projects under development.
GECC also owns Global Education Alliance Inc. ("GEA"), a subsidiary that specializes in placing students in elite North American schools and universities, and Irix Design, a leading design and media communication company based in Vancouver, Canada.
Visit GECC online at www.GEChq.com or www.GECliving.com to explore our services and watch our corporate video.
Toby Chu
Chairman, President & CEO
Global Education Communities Corp.
Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: info@GEChq.com
FORWARD-LOOKING STATEMENTS
Some statements in this news release contain forward-looking information (the "forward-looking statements") about the Company and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, that the interest rate reduction received for GEC® Pearson from the CMHC-sponsored mortgage financing programis expected to substantially lower finance costs and enhance returns for GECC shareholders, that upon completion, GEC® Oakridge will offer a capacity of 450 occupants and is projected to generate over $8 million in rental revenue at full occupancy, and that Pure Group will be able to raise institutional capital into their REDT (real estate development trust) for EMC. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the "Risks") that could cause GECC's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, economic factors and monetary policy, the performance by third parties of their commitments, and the risk factors identified in the MD&A forming part of the 2025 Q2Financial Report. Forward-looking statements are based on the beliefs, opinions and expectations of GECC'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
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