MIAMI, FL - (NewMediaWire) - January 11, 2016 - Metrospaces, Inc. (OTC PINK: MSPC) today issued a letter to shareholders explaining current state of projects.
LETTER TO OUR SHAREHOLDERS
To Metrospaces Inc. Shareholders:
We are hitting the ground running in 2016, successfully having completed complete construction approval in Tulasi Mandir Spa and Hotel as well as Hotel Santo Cristo de Pariaguan in 2015. We are in advanced negotiations with banks regarding construction approval for both these projects. We fully expect to begin construction on these 2 projects within the next 4 months or so. Additionally, we will begin a very aggressive marketing campaign for our Telmo & Tango Buenos Aires apart-hotel project. We expect this project to sell very well particularly since with recent political shifts in Argentina will bring more private investment and renewed interest in Buenos Aires real estate.
For a company Fact Sheet: https://db.tt/RojE1mC5
In continuation, here is an update on our projects and investment highlights:
Tulasi Mandir Hotel and Spa: Final construction approval was received in December 2015. Additionally, the Company has successfully acquired 60% of the property on this project. This is a 28-unit ultra-luxury hotel and villa project located in Coche Island, Venezuela. It is a high-end hotel and spa, aimed at more discerning clients. It will attend an unserved high-end market in Coche Island. We expect to charge $280-$350 per night, and have occupation rates above 70%. The project is currently about 15% executed with full permits in place. We are moving forward with construction loan requests with at least 3 banks and expect approval in the next 2-3 months or so, at which time we will begin construction inmmediately after approval. For more information: https://db.tt/StIPXi3H
Hotel Santo Cristo de Pariaguan: This is the company's first entrepreneurial hotel project. Metrospaces originally acquired a 1/3 interest in this hotel project, however we are currently negotiating with partners to increase our stake 60%. The project received final construction approval in December, and is now in the process of being reviewed by banks for construction loan approval. We expect to begin construction in 1Q of 2016. The hotel is a 122-room 4 star business hotel. The hotel looks to take advantage of the vast lack of hotel infrastructure in the Orinoco Oil Belt formation. Here is a link to a presentation: https://db.tt/MnqmxbTy
Ikal Lodge and Winery: Ikal Lodge and Winery is a 75-hectare wine based hotel and vacation home project, located in Mendoza, Argentina. The amazing project consists of a 25-master suite luxury hotel, a world-class winery and 29 luxury villas that will be sold under fractional ownership. Total revenue from the sale of the villas is expected to be at approximately $100 million, with and EBITDA of about 45%. We are in advanced negotiations with 3 potential investors to put up 100 financing. We expect to close on this funding before end of 1Q 2016. For more information, please see: www.ikal1150.com. For more information:
Telmo & Tango Apart-Hotel: This will be the companies first completed project and the first to go on sale and generate revenue for the company. It is a 26-unit apart-hotel project based in San Telmo, Buenos Aires and is 95% completed. A very aggressive marketing and sales campaign has been launched and will continue to increase in the Latin American region. We expect to generate approximately $2.5-3 million in revenue in the next 2 years as well as generate an additional $350,000 in annual revenue from the management of the apart-hotel suites. For a sales brochure: https://db.tt/UnCrb4pD
Quality of Life Boutique Hotel: The Company has executed and paid for an option to acquire a 22-rooom luxury boutique hotel in Morrocoy, Venezuela. The acquisition is for Bs.300 million which at the official exchange rate, represents approximately $1.5M. Currently, the hotel does about $300,000 in revenue with a 25% EBITDA margin. With our repositioning plan having been executed, we expect to bring it to about $700,000 in revenue with a 35% EBITDA. Financing is expected to come from Banco Bicentenario and to close within 120 days. For more information: https://db.tt/UVUyF3QN
El Naranjo Yunga Estates: El Naranjo Yunga Estates project consists of 3000 hectares (7,143 acres) of undeveloped virgin land in the pre-Amazon region, northern Argentina. It will have 32 lots of an average size of 45 hectares (112 acres) giving each owner a real sense of "land ownership" in one of the most beautiful getaway places on earth. Additionally, the property will have an 8-room boutique hotel run and operated by renowned and prestigious luxury boutique hotel operator. This hotel will be made mostly to provide concierge services to the estates, and for guests of our landowners. Each lot is forecasted to be sold for $560,000 for total project revenue of about $18 million in 4 years approximately. Total land and development costs are expected to come in at about $8 million, thus providing and IRR of over 120% and $10 million in EBITDA. For more information: https://db.tt/lXwggoal
Other investment highlights:
JV Agreement with Proideas (http://proideas.com.ar/): This JV agreement will allow Metrospaces a partnership with a very prominent private equity group in Argentina, just as the country begins a new economic shift to a more pro-market environment. This partnership will bring not just new deal flow to the company, but more importantly will also bring in fresh financing for the company's current projects.
JV Agreement with Prohotels of Argentina: In its refocusing of the company's business plan to hotel development, Metrospaces has executed a JV Agreement with Prohotels (http://www.prohotels.com/). This partnership gears itself perfectly with the company's development and financing skills. This agreement calls for the development of 4 new hotels in the coming 3 years. It is a testament to our business plan execution.
Other Projects: The Company will continue to make a strong focus on building a chain of hotels, aimed at niche markets. In particular, we are looking at the possible acquisition of a 100% interest in another lot in the Orinoco Oil Belt region. Additionally, we are in talks to acquire 2 operating hotels.
Again, we want to thank all our new shareholders for taking an interest in our story and have given us the chance to be where we are at! We will continue to work very hard to make your investment in our company a success, and have very high expectations for 2015 and beyond!
Metrospaces (www.metrospaces.net) is a publicly traded real estate investment and Development Company which acquires land, designs, builds, and develops then resells condominiums and Luxury High-End Hotels, principally in urban areas of Latin America. The company's current projects are located in Buenos Aires, Argentina, and Caracas, Venezuela.
Six years ago Metrospaces shareholders saw a unique opportunity to participate in several exciting property markets around the world. Through their worldwide network of highly recognized real estate entrepreneurs, the company was able to capitalize on unique real estate development opportunities. Since inception the company has leveraged those relationships along with extensive financial expertise and transformed excellence by results.
Metrospaces is a boutique real estate development company, a product of the alliance of Metrospace shareholders, along with an elite group of real estate professionals and entrepreneurs located around the world. Company shareholders have extensive careers in real estate financing worldwide, and have funded projects both in the Americas and across Europe valued in excess of US $450 Million.
Metrospaces' majority shareholders have partnered with Investors on Elite properties including The London BVLGARI 5 Star Hotel, and are currently involved in negotiations for the development of several Elite luxury properties in South America.
Among Metrospaces' partners are Architects, Real Estate Developers, Agents and Attorneys of the highest standing, with extensive experience in the global property market.
Metrospaces was originally founded by company President Oscar Brito.
Relevant Links: http://metrospaces.net/
Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Metrospaces Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.
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