METROSPACES ISSUES MID-2015 SHAREHOLDER
LETTER
MIAMI, FL -- September 11th, 2015 -- InvestorsHub NewsWire --
Metrospaces, Inc. (OTC:
MSPC) Today issued a letter to shareholders explaining current
state of projects
LETTER TO
OURSHAREHOLDERS
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 companys 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:
https://db.tt/MnqmxbTy
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.
https://db.tt/StIPXi3H
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.
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, 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% construstion financing. We
expect to close on this funding before end of 2015. For more
information, please see: www.ikal1150.com
https://db.tt/0OyHd3ZM
JV Agreement with Prohotels of Argentina: In its
refocusing of the companys business plan to hotel development,
Metrospaces has executed a JV Agreement with Prohotels (http://www.prohotels.com/). This partnership gears
itself perfectly with the companys 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 dont
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.
Relevant Links:
www.metrospaces.net
Relevant Links:
http://metrospaces.net/
http://www.prohotels.com/
http:/www./ikal1150.com
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.
Company Contact: Tel: 305-600-0407
Investor Relations: investors@metrospaces.net