Mr. Toby Chu reports

GECC ANNOUNCES URBAN DESIGN PANEL APPROVAL FOR THE GEC LANGARA PROJECT WITH INCREASED DENSITY

Global Education Communities Corp.'s latest flagship project, GEC Langara, has received approval from the City of Vancouver Urban Design Panel (UDP), an independent advisory board consisting of design professionals. Located at the prime corner of Cambie Street and West 49th Avenue, adjacent to the Langara-49th Avenue SkyTrain station, this approval allows the GEC Langara project to progress toward Vancouver Council and Planning Department approvals to increase its density significantly. With the UDP support, the project may, subject to receipt of city council and Planning Department approvals, expand from the originally planned 10 to 26 floors, boosting the maximum buildable area from 63,204 square feet to 163,572 square feet -- an increase of 159 per cent. The parking requirement has also been reduced.

GECC acquired the property in December, 2023, with an existing development permit for a 10-storey market rental building. The UDP approval aligns with the Bill 47 Transit Oriented Area (TOA) legislation, enabling greater density near transit hubs. Consequently, GEC Langara's revised floor plan will, subject to receipt of city council and Planning Department approvals, accommodate an estimated 650 occupants, a substantial increase in capacity of 171 per cent.

"We are very pleased with the government's support for higher density zoning under the TOA legislation," said Toby Chu, chairman, president and chief executive officer of Global Education. "This decision transforms the project's outlook. Our original projected annual rental revenue was approximately $3.5-million; with the planned redesign, if city council and Planning Department approvals are received, it is now projected to exceed $13.5-million. In addition to the increased income from higher density, this property will be exempt from the Goods and Services Tax (GST) and certain development levies, thus reducing the capital cost to develop this property. The enhanced economies of scale will reduce average costs and improve operational efficiencies, which is crucial in today's economic environment. Importantly, the improved pro forma allows GECC to allocate a portion of the property to much-needed, below-market rental to students pursuing their college education."

About Global Education Communities Corp.

Since 1994, Global Education has established itself as a leading player in the Canadian education and student housing sector, serving both domestic and international markets. Global Education 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, Global Education 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 health care, business and technology.

Global Education 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.

Global Education 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.

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