Global Education Communities Corp is poised to tackle Metro Vancouver’s housing crisis.
A new strategy to supplement student housing will incorporate some 800 beds into its existing portfolio.
Global Education Communities Corp is poised to tackle Metro Vancouver’s housing crisis.
A new strategy to supplement student housing will incorporate some 800 beds into its existing portfolio.
The Global Education Communities Corp has unveiled a new Master Lease Partnership Program to enhance existing operations in response to the acute housing shortage in Metro Vancouver.
The initiative aims to increase GECC’s revenue sources, supplement corporate-owned student housing offerings without heavy capital investment, and speed up the process of student-bed provisioning.
The core idea behind the MLPP strategy is to lease over 250,000 GBSF of residential rental facilities from developers for periods spanning five to 10 years. This move will incorporate around 800 beds into GECC’s existing Metro Vancouver portfolio of 1,500 beds. The residential facilities in focus are brand-new, with expected possession dates within the next six months.
After initiating the construction of these rental buildings years ago, developers are now veering away from operating these properties given the contemporary real estate climate. This shift offers a ripe opportunity for the execution of the MLPP strategy.
Toby Chu, chief executive officer at GECC, said: “Developers can now stay centered on the construction and development, unburdened by the day-to-day management of rental properties.”
Boasting a robust infrastructure and three decades in the educational sector, complemented by nearly a decade in student housing, GECC stands ready to swiftly populate and efficiently handle student rental operations.
Chu further elaborated on the timely necessity of this strategy, given Vancouver’s present housing dilemma.
“Traditional development and construction cycles span five to seven years. The MLPP model offers GECC a shortcut to new inventories by collaborating directly with developers,” he said, mentioning the prevailing mood among developers, who – given the current economic factors – prefer to lease rather than sell.
