MIAMI, FL / ACCESSWIRE / September 11, 2015 / Metrospaces, Inc. (OTC: MSPC) Today issued a letter to shareholders explaining current state of projects.
LETTER TO OUR SHAREHOLDERS
To Metrospaces Inc. Shareholders:
2015 has been a turning year for us. In the first half of the year, Metrospaces, has turned into a revenue-generating company, mostly due to the wholesale of grapes and wines from its Ikal Lodge and Winery project. Even though the revenue generated so far is only a fraction of what we expect from our real estate project, it has been meaningful since it has been very helpful in efforts to finance company operations. Our laser-focused attention on our current projects has been paying off since we have been advancing very favorably in the planning approval of four 2 hotel projects in Venezuela. Additionally, we are now in a position to look to acquire new hotel projects (both projects and operating hotels). We expect to make at least 1-2 more hotel acquisitions before the end of 2015.
Daniel Silvas management expertise has been visible since day one, being the thrust behind obtaining planning approval for our projects, and also in the pre-development stage and grape operation at Ikal. Additionally, we are very happy with our fund raising process so far with Optimize Capital. Even though funding has not closed with any investor up to date, we are in advanced conversations with a few groups, and expect to close on the funding in the next 2-3 months. Total funding for this campaign is $10 million. With these resources, we would be a position to fully complete the Ikal Lodge and Winery project, as well as acquire another 2 projects we are currently negotiating. Certainly, with this funding we have access to quite a few possibilities.
We look forward to a very successful 2015!
Sincerely,
Metrospaces Senior Management
In continuation, here is an update on our projects:
Orinoco Oil Belt Hotel: This is the company's first entrepreneurial hotel project. Metrospaces acquired originally acquired a 1/3 interest in this hotel project, however is currently negotiating with partners to increase our stake 66%. 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 expect complete planning approval within 30 days. At that point, we will be approaching 3 of the mayor local banks for total funding. We expect to begin construction in 4Q of 2015. 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:
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 and we are looking to present loan applications to Banco Bicentenario, Banco de Venezuela and Banco Provincial BBVA, 3 of Venezuelas main commercial banks, within the next 2 weeks. We expect to have loan approval in the next 3 months or so.
El Naranjo Yunga Estates: El Naranjo Yunga Estates project consists of 3000 hectares (7,143 acres) of undeveloped virgin land 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 re-known and prestigious luxury boutique hotel operator. This hotel will be made mostly to provide concierge services to the estates, and for guests of our land owners. 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.
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, consisting 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 successfully acquired this project in January of the current year, and had a very successful wine harvesting. We are in advanced negotiations with 3 potential investors to put up 100% construction financing. We expect to close on this funding before end of 2015. For more information, please see: www.ikal1150.com
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!
Capital Stock: The company recently raised its total authorized shares to 10 billion. We only expect to use our recently raised authorized as part of a financing deal with investor groups through the fund raising with Optimize Capital. This funding is for a total of $10 million and all discussions so far have been under common stock deals at a set price. This deal would greatly decrease our cost of capital. We expect this campaign with Optimize to bring in all necessary resources to finish Ikal and make new acquisitions. Asides from the Optimize Capital funding, we don't expect to make any significant use of our newly authorized shares. Additionally, the company saw necessary to execute a 1000-to-1 reverse stock split. Since we are now a revenue generating company, we wanted to profile our stock price to attract more long-term investors to our company shareholder base.
About Metrospaces:
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 companys 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 world-wide 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 $350Million.
Metrospaces majority shareholders has partnered with Investors on Elite properties including The London BLVGARI 5 Star Hotel, and is 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.
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.
