A Transformative Year with Strategic Divestiture and Significant Progress on Student Housing Developments

Executive Summary

• Global Education Communities Corp. (GECC) completed the strategic divestiture of Sprott Shaw College on August 8, 2025, generating approximately $35 million in net proceeds to strengthen its balance sheet and focus on its core student housing business.
• The company reported a near-zero vacancy rate for its student housing portfolio as of August 31, 2025, driven by strong demand from over 500,000 students in British Columbia.
• GECC secured approximately $178.8 million in CMHC-sponsored mortgages in fiscal 2025 and provided significant updates on three major development projects: GEC® Oakridge, Education Mega Center® (EMC), and GEC® Langara Expansion.

Key Details

• Divestiture of Sprott Shaw College:
  • Completed on August 8, 2025.
  • Net proceeds received: ~$35 million.
  • Transaction concluded at an attractive multiple of Sprott Shaw's EBITDA.
  • GECC retained its language colleges (SSLC Language College, SSLC Business College, CIBT School of Business & Technology) to serve as a source of student residents.
• Financing Activity:
  • Secured ~$178.8 million in CMHC-sponsored mortgages during fiscal 2025.
  • Financing covers two towers and construction financing for GEC® Oakridge.
  • Overall financing costs declined in Q4 of fiscal 2025 compared to Q3, aided by cash proceeds from the Sprott Shaw sale.
• GEC® Oakridge Project:
  • Partnership with Pomerleau Capital and ITC Construction Group.
  • 18-storey student housing project.
  • Construction began February 2025; progressing slightly ahead of schedule.
  • Target completion: Early 2027.
  • Total construction budget: $123 million (CMHC-sponsored).
  • Projected annual rental income: >$8 million in first full academic year.
• Education Mega Center® (EMC) - Surrey:
  • Collaboration with Pure Group.
  • Development Permit received: June 2025.
  • Excavation permit application submitted: July 2025.
  • Estimated total construction budget: $330 million.
  • CMHC financing application contemplated.
• GEC® Langara Expansion:
  • Received Urban Design Panel approval to increase density from 10 to 26 storeys.
  • Cost per buildable square foot expected to decrease by nearly 50%.
  • Projected annual rental income increase: From ~$3.5 million to $11.5 million in first full academic year.
  • CMHC-sponsored financing contemplated.
• Operational Metrics:
  • Student housing portfolio vacancy rate: Near-zero as of August 31, 2025.
  • Total GEC portfolio (operational + development budgets): Exceeds $1.3 billion.
  • Partnerships: Over 95 schools in Metro Vancouver.

Notable Quotes

• "Fiscal 2025 was a defining year for GECC," commented Toby Chu, Chairman, President and Chief Executive Officer of GECC. "By divesting of Sprott Shaw College, we decreased debts, substantially increased our cash position, and focused our resources on our core strength: developing and operating high-quality student housing communities. The progress we have made on our development pipeline, bolstered by strategic partnerships and favourable CMHC-sponsored financing, underscores our ability to execute on our strategic vision and capitalize on the strong fundamentals of the student housing market in Metro Vancouver."