GECC Announces Urban Design Panel Approval for the GEC Langara Project with Increased Density

Rhea-AI Summary

Global Education Communities Corp. (GECSF) has received Urban Design Panel approval for its GEC Langara project in Vancouver, enabling significant density increases pending City Council and Planning Department approvals. The project, located near Langara-49th Avenue SkyTrain station, could expand from 10 to 26 floors, increasing buildable area by 159% to 163,572 square feet. The development's occupant capacity could grow by 171% to 650 people. The revised plan aligns with Bill 47 Transit Oriented Area legislation, potentially boosting projected annual rental revenue from $3.5M to $13.5M. The property will be exempt from GST and certain development levies, reducing capital costs. GECC plans to allocate part of the property for below-market student rental housing.

Positive

• Significant density increase approval from 10 to 26 floors, expanding buildable area by 159% to 163,572 square feet
• Projected annual rental revenue could increase from $3.5M to $13.5M
• Property will be exempt from GST and certain development levies, reducing development costs
• Strategic location next to SkyTrain station enhances property value and attractiveness
• Increased occupant capacity by 171% to 650 people improves operational efficiency

Negative

• Project still requires final approval from City Council and Planning Department
• Significant construction and development costs will be required for the expanded project
• Longer development timeline likely due to increased project scope

VANCOUVER, BC / ACCESS Newswire / June 16, 2025 / Global Education Communities Corp. ("GECC" or the "Company") (TSX:GEC)(OTCQB:GECSF) is pleased to report that its 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 towards 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%. The parking requirement has also been reduced.

GECC acquired the property in December 2023^*1 with an existing development permit for a ten-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%.

"We are very pleased with the government's support for higher density zoning under the TOA legislation," said Toby Chu, Chairman, President and CEO of GECC. "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 proforma allows GECC to allocate a portion of the property to much-needed, below-market rental to students pursuing their college education."

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 annual rental revenues from the redesigned GEC® Langara project are projected to exceed $13.5 million. 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, that the current project redesign does not receive Vancouver Council and Planning Department approvals, customary risks of the construction industry, 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 Q2management's discussion and analysis. 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

What is the projected annual rental revenue increase for GECSF's GEC Langara project?

The projected annual rental revenue is expected to increase from approximately $3.5 million to $13.5 million, following the density increase approval.

How many floors will GECSF's GEC Langara project have after the Urban Design Panel approval?

Subject to City Council and Planning Department approvals, the project can expand from 10 to 26 floors.

What is the new buildable area for GECSF's GEC Langara project?

The maximum buildable area could increase by 159% from 63,204 square feet to 163,572 square feet, pending final approvals.

Where is GECSF's GEC Langara project located?

The project is located at the corner of Cambie Street and West 49th Avenue in Vancouver, adjacent to the Langara-49th Avenue SkyTrain station.

What tax benefits will GECSF receive for the GEC Langara project?

The property will be exempt from Goods and Services Tax (GST) and certain development levies, reducing the capital cost of development.