GECC Provides Update on the Atmosphere Project in Richmond, BC
Rhea-AI Summary
Global Education Communities Corp. (OTCQB:GECSF) announced a significant legal victory as the British Columbia Court of Appeal overturned a lower court ruling regarding their Atmosphere Project in Richmond, BC. The court found the project's commercial lender in breach of contract related to financing the real estate development.
The case stems from a $60 million deposit made by GEC Richmond in March 2018 for pre-purchasing interests in an office tower and residential rental tower. The project stalled in March 2020 when the lender ceased funding following the COVID-19 pandemic, leading to the developer's entry into creditor protection and GEC Richmond substantially writing off the investment by 2022.
The September 22, 2025 appellate court decision partially reverses the August 2024 Supreme Court of British Columbia ruling, vindicating GECC's position regarding the lender's breach of the loan agreement.Positive
- Court of Appeal victory confirming lender's breach of contract
- Potential for recovery of substantial portion of $60 million investment
- Legal validation of company's position against the lender
Negative
- $60 million investment substantially written off by fiscal year-end 2022
- Project remains stalled since March 2020
- Ongoing legal proceedings creating uncertainty about final resolution
News Market Reaction 1 Alert
On the day this news was published, GECSF declined 8.59%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
VANCOUVER, BC / ACCESS Newswire / September 23, 2025 / Global Education Communities Corp. ("GECC" or the "Company") (TSX:GEC)(OTCQB:GECSF) today announced that the British Columbia Court of Appeal has overturned a lower court ruling, finding the project's commercial lender in breach of contract related to financing a real estate development project in Richmond, BC. The decision reverses, in part, a previous ruling by the Supreme Court of British Columbia.
Background on the Investment and Dispute:
In March 2018, a subsidiary of GECC, GEC (Richmond) GP Inc., and Global Education City (Richmond) Limited Partnership ("GEC Richmond") pre-purchased interests in an office tower and a residential rental tower within the Richmond development from a Vancouver-based developer.
GEC Richmond provided a
In November 2019, the developer secured a construction loan from a Toronto-based commercial lender (the "Lender") to finance the project's construction.
The dispute arose in March 2020 when, shortly after the start of construction financing, the Lender issued a cessation funding notice following the onset of the COVID-19 pandemic and subsequent border lockdowns.
The developer was unable to secure replacement financing during the pandemic period, leading to the project's stall and eventual entry into proceedings under the Companies Creditors' Arrangement Act (Canada). As a result, GEC Richmond substantially wrote off the investment by fiscal year-end 2022.
In October 2022, GEC Richmond commenced legal action against the Lender for breach of contract. The developer filed its legal action shortly thereafter. After the ruling against GEC Richmond and the developer by the Supreme Court of British Columbia in August 2024, the matter was appealed.
On September 22, 2025, the Court of Appeal for British Columbia overturned, in part, the lower court's decision, finding the Lender in breach of the loan agreement.
"We are gratified that the Court of Appeal recognized the Lender's breach of the loan agreement", said Toby Chu, Chairman, President and CEO of GECC.
Further material developments will be reported as further legal activities take place.
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
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
SOURCE: Global Education Communities Corp.
View the original press release on ACCESS Newswire
FAQ
What was the outcome of GECC's legal appeal for the Richmond BC Atmosphere Project?
How much did GECC invest in the Richmond Atmosphere Project?
When and why did the Richmond Atmosphere Project stall?
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What is the current status of GECC's Richmond development dispute?
