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MIAMI, FL--(Marketwired - Mar 28, 2016) - Metrospaces, Inc. (
LETTER TO OUR SHAREHOLDERS
To Metrospaces Inc. Shareholders:
We close the month of March on a high note, having finalized the Hotel Operations Agreement for the Quality of Life Boutique Hotel and the beginning of wine harvest season for our Ikal Wine and Lodge boutique hotel project. We expect full year revenue on for Ikal Wine and Lodge of approximately $240,000 for the next 12 months, and approximately $330,000 for the Quality of Life Boutique Hotel, for a total of approximately $570,000 on these two projects alone. This represents an increase of over 100% for the previous 12 months, ending in March 31st, 2016. Additionally, we continue to make forward progress on our bigger projects, the Santo Cristo Hotel and the Tulasi Mandir Boutique Hotel.
For a company Fact Sheet: https://db.tt/RojE1mC5
Quality of Life Boutique Hotel: The Company has finalized a hotel operating agreement with the current owners, as well as made the second payment on its option to acquire agreement on the hotel. The company will market and operate the hotel while paying the owner a monthly fee. Operating terms are very favorable to the Company due to the fact that the operating agreement is part of an option to acquire. The hotel currently runs 16 rooms, however an additional 6 more will be available in approximately 3 months once renovation on an existing adjacent building is finished. Acquisition financing is expected to come from Banco Bicentenario and to close within 120 days. Once fully operational and stabilized the hotel is expected to generate revenue of approximately $30,000 per month, with a 35% EBITDA margin. Once complete hotel renovation and second phase is completed, the hotel will have 38-42 rooms and generate approximately $800,000 in revenue. For more information: https://db.tt/UVUyF3QN
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. March began the annual wine grape harvesting season, were we expect to sell all our harvest to such long-lasting clients as Pernod Ricard and Los Haroldos. We expect to generate approximately $240,000 in revenue for this harvest. Additionally, we are setting aside approximately 15% of this year's harvest to make our first Ultra Premium wine to accompany our award-winning Ikal 1150 brand. Once the real estate project is complete, 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: https://db.tt/XUFl8NhH
Tulasi Mandir Hotel and Spa: Final construction approval was received in December 2015, and construction loan requests have been presented to Banco de Venzuela (http://www.bancodevenezuela.com/) and Banco Bicentenario (http://www.bicentenariobu.com/). Loan processing and final approval usually take approximately 90 days, so we are looking to begin construction no later than May of this current year. Total construction budget for this project is estimated at approximately $2 million. Additionally, we will begin selling the project under time share program, starting in April of this year. Venezuela is considered one of the most active time share markets in Latin America. The Company owns 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%. Once stabilized, the hotel is expected to generate approximately $2.2M in revenue with a 35% EBITDa margin. For more information: https://db.tt/StIPXi3H
Hotel Santo Cristo de Pariaguan: Metrospaces owns 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. Loan approval request has been made with Banco de Venezuela and we expect final construction loan approval before end of May of 2016. The hotel is a 122-room 4 star business hotel. e hotel looks to take advantage of the vast lack of hotel infrastructure in the Orinoco Oil Belt formation. Once stabilized, the project is expected to generate about $4M in annual revenue with a 40% EBITDA margin. 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
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 Metrospaces 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 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.
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.