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

Rhea-AI Summary

Global Education Communities Corp. (OTCQB:GECSF) reported significant achievements for fiscal year 2025, highlighted by the strategic sale of Sprott Shaw College for $35 million in net proceeds. The company maintained a near-zero vacancy rate in its student housing portfolio, serving a market of over 500,000 potential students in British Columbia.

GECC secured $178.8 million in CMHC-sponsored mortgages and advanced several major development projects: the $123 million GEC® Oakridge project (completion 2027), the $330 million Education Mega Center® in Surrey, and the GEC® Langara expansion from 10 to 26 storeys. The Langara project is expected to generate $11.5 million in annual rental income, up from the initially projected $3.5 million.

Positive

• None.

Negative

• High construction costs with $330M for Surrey EMC project
• Significant development risk with multiple concurrent large-scale projects
• Loss of revenue stream from divested Sprott Shaw College operations

VANCOUVER, BC / ACCESS Newswire / September 2, 2025 / Global Education Communities Corp. ("GECC" or the "Company") (TSX:GEC)(OTCQB:GECSF) is pleased to provide a summary of its corporate activities and key achievements for the fiscal year ended August 31, 2025.

Fiscal 2025 was a transformative year for GECC, marked by pivotal events that strategically positioned the Company for future growth and a strengthened focus on its core business of providing student-centric rental apartments to over 0.5 million potential students.

Key Highlights from Fiscal 2025:

Strategic Divestiture of Sprott Shaw College
On August 8, GECC completed the sale of Sprott Shaw College, receiving net proceeds of approximately $35 million. This transaction significantly strengthens the Company's balance sheet and provides capital to support future growth initiatives. The sale was concluded at an attractive multiple of Sprott Shaw's EBITDA, enabling GECC to sharpen its focus on developing and expanding its student housing portfolio. GECC retained its language colleges, which will continue to serve as a valuable source of student residents for the GEC® properties, complementing the Company's partnerships with over 95 other schools in Metro Vancouver.

Record Performance in Student Housing:
Despite headwinds in the broader conventional real estate market, the student housing sector remains resilient and continues to demonstrate strong performance. As of August 31^st, 2025, GECC's student housing portfolio had a near-zero vacancy rate. This high demand is driven by the robust student population in British Columbia, which includes over 500,000 domestic and international students at the college and university levels, as well as a strong market for short-term international students for language studies and summer programs, which are not capped by federal government policies.

Successful Project Financing and Development Progress:
GECC made significant strides in advancing its project pipeline during fiscal 2025. It successfully secured approximately $178.8 million in CMHC-sponsored mortgages in fiscal 2025, including financing for two towers and the construction financing for GEC® Oakridge. CMHC-sponsored financing provides long-term financial stability with favourable, lower interest rates. The Company's overall financing costs declined in the fourth quarter of fiscal 2025 from the third quarter of fiscal 2025, further enhanced by the cash proceeds from the Sprott Shaw College transaction.

Partnerships and Development Updates:

• GEC® Oakridge: GECC has partnered with Pomerleau Capital and its subsidiary, ITC Construction Group, to co-develop this 18-storey student housing project. Construction began in February 2025 and is progressing slightly ahead of schedule with a target completion date in early 2027. The total construction budget is $123 million, with financing sponsored by CMHC. The project is projected to generate over $8 million in annual rental income commencing in its first full academic year of operation. See news release here: https://www.costar.com/article/1632015166/one-of-canadas-biggest-student-housing-operators-launches-major-vancouver-project

• Education Mega Center® (EMC): In collaboration with Pure Group, GECC is advancing the Surrey EMC project. The project received its Development Permit in June 2025, and an excavation permit application was submitted in July 2025. The total construction budget is estimated at $330 million, with a CMHC financing application contemplated. See news here: https://dailyhive.com/vancouver/gec-education-mega-centre-surrey-student-housing-tower-partnership

• GEC® Langara Expansion: This 650-bed location received Urban Design Panel approval to increase the project's density from 10 to 26 storeys. This approval will substantially reduce the cost per buildable square foot by nearly 50% and is projected to increase annual rental income commencing in its first full academic year of operation from an estimated $3.5 million to $11.5 million. CMHC-sponsored financing is also contemplated for this development.

"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."

Demands:
According to BC Government statistics^*1, over 0.5 million college and university students reside in British Columbia, comprising both domestic and international students, demonstrating significant market demand for student-centric rental properties.

Supply:
A report published by Bonard Research^*2 indicated that all other Canadian student housing providers are heavily concentrated in Ontario or Eastern Canada, leaving GECC with no meaningful competition in BC at this time. Hence, the Company plans to aggressively expand its presence in British Columbia to gain economies of scale and leverage its existing infrastructure and marketing presence to dominate the local market.

About Global Education Communities Corp.
For nearly 39 years, GECC has been a leader in Canada's education and student housing landscape. Serving a vibrant community of nearly 10,000 domestic and international students annually, GECC operates across 24 student housing apartments, campuses, and offices in Canada and abroad.

Student housing and education super-centres:
GECC is committed to solving Metro Vancouver's critical student housing challenges under the GEC® Living brand. GECC specializes in developing and managing off-campus student-centric rental apartments and pioneering the concept of education super-centres. The GEC® portfolio, comprising both operational properties and development budgets for the pipeline, exceeds $1.3 billion. GECC provides housing solutions to 95 schools in Metro Vancouver, serving domestic and international students from across Canada and 79 countries worldwide. Visit us at: www.gecliving.com.

Education Services
GECC was the owner of Sprott Shaw College until its divestiture in August 2025. GECC's current academic division includes SSLC Language College, SSLC Business College (formerly Vancouver International College) and CIBT School of Business & Technology. These institutions offer a diverse range of business programs and ESL programs (English as a Second Language) designed to meet the evolving needs of international learners. Visit us at: www.studySSLC.com.

As part of its infrastructure, GECC also owns Global Education Alliance Inc. This student recruitment agency connects students with top-tier North American schools and places students into GECC's student housing properties. Irix Design is a leading design and media communications firm based in Vancouver.

Visit GECC online at www.GEChq.com to explore our services and watch our corporate video. Check out our video library on YouTube.com: https://www.youtube.com/gecliving

Toby Chu
Chairman, President & CEO
Global Education Communities Corp.

Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: info@GEChq.com

*1 https://www2.gov.bc.ca/assets/gov/education/post-secondary-education/data-research/stp/stp2023_international_research_results_2025-02-07_final2.pdf

*2 Bonard (July 15, 2025) Student Housing Market in Canada: Room to Grow Amid International Student Cap https://www.bonard.com/insights/canadian-pbsa-a-sector-with-plenty-of-room-for-growth#form

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, projected annual rental incomes of GEC® Langara and GEC® Oakridge and the estimated construction budget of Education Mega Center®. 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 and the risk factors identified in the Company's MD&A for the third quarter ended May 31, 2025. 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

View the original press release on ACCESS Newswire

FAQ

How much did GECSF receive from the Sprott Shaw College sale in 2025?

GECC received approximately $35 million in net proceeds from the sale of Sprott Shaw College, completed on August 8, 2025.

What is the total construction budget for GEC Oakridge student housing project?

The GEC Oakridge project has a total construction budget of $123 million, with CMHC-sponsored financing and is expected to generate over $8 million in annual rental income.

How many potential students does GECSF serve in British Columbia?

GECC serves a market of over 500,000 domestic and international students at the college and university levels in British Columbia.

What is the expected completion date for GECSF's GEC Oakridge project?

The GEC Oakridge project is progressing ahead of schedule with a target completion date in early 2027.

How much CMHC-sponsored mortgage financing did GECSF secure in fiscal 2025?

GECC secured approximately $178.8 million in CMHC-sponsored mortgages during fiscal 2025, including financing for two towers and GEC Oakridge construction.

What is the projected annual rental income for GEC Langara after expansion?

Following the expansion from 10 to 26 storeys, GEC Langara is projected to generate $11.5 million in annual rental income, up from the initial estimate of $3.5 million.