MIAMI, FL - (NewMediaWire) - November 9, 2015 - Metrospaces, Inc. (OTC PINK: MSPC) today issued a letter to shareholders explaining current state of projects.
To Metrospaces Inc. Shareholders:
2015 will be remembered as a key year in our business plan execution. It is the year when the Company became a revenue-generating-company, and has successfully obtained planning approval on two of its key hotel projects. Also, the company successfully closed on the acquisition of the Ikal Wine and Lodge project, as well the Yunga Estate Project. The incorporation of Daniel Silva and his experience has already proved to be a great decision, haven already proven himself in bringing in the Ikal Wine and Lodge project, as well as his expertise in expediting architectural plans, as well as city planning approval. Additionally, we fully expect to end the year with introduced loan requests for our $8 million Hotel Santo Cristo de Pariaguan and our $2.5 million Tulasi Mandir Spa and Hotel. We expect to begin construction on the Hotel Santo Cristo de Pariaguan and the Tulasi Mandir Spa and Hotel in Q1 of 2016.
For a company Fact Sheet: https://db.tt/lC9aKCYj
In continuation, here is an update on our projects and investment highlights:
Tulasi Mandir Hotel and Spa: The Company has successfully acquired 60% of 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. All permits have been successfully renewed as of end of October, and we have presented loan applications to Banco Bicentenario, Banco de Venezuela and Banco Provincial BBVA 3 of Venezuela's main commercial banks. We expect to have loan approval in the next 3 months or so. 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 approval from the Ministry of Tourism, so planning approval and financing are well on track. Currently, the project has been introduced to the City Council and we expect complete planning approval before end of 2015. At that point, we will be approaching 3 of the mayor local banks for total funding. 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
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
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%. Metrospaces has executed a LOI to acquire the project. We are in advanced negotiations with 3 potential investors to put up 100 financing. We expect to close on this funding before end of 2015. For more information, please see: www.ikal1150.com. For more information: https://db.tt/0OyHd3ZM
Quality of Life Boutique Hotel: The Company has executed and paid for an option to acquire a 22-room 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
Other investment highlights:
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 BLVGARI 5 Star Hotel, and are currently involved in negotiations for the development of several Elite luxury properties in South America.
Among Metrospace 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.
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.