MIAMI, FL--(Marketwired - Dec 22, 2014) - Metrospaces, Inc. (
LETTER TO OUR SHAREHOLDERS
To Metrospaces Inc. Shareholders:
We approach the new year of 2015 with a high sense of accomplishment from our current year, and with a great deal of optimism for current and new projects. Metrospaces, now under new management, is making a strong focus on hotel development, and divesting away from its residential projects. To this extent, the Company has successfully sold its stakes in Chacabuco 1353 and the La Tour 320 projects. Revenue from those sales is now being deployed in the current new hotel projects. The company will look to take advantage of very strong regional demand.
With the addition of Mr. Daniel Silva as the new CEO, the company is now looking to strengthen its pool of talent in our management team, and has added 2 members to the board of directors with the idea of not just bringing the most qualified management team available, but also to strengthen our corporate governance. The company will continue to add to its management team, and to create a very strong board of directors that will bring very strong corporate governance. The vast majority of management's compensation is long-term equity in the Company, looking to always align shareholder interest with management.
We thank all our shareholders for a wonderful 2014, and we look forward to an even better 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 50%. The project received approval from the Ministry of Tourism, so planning approval and financing are well on track. Currently, the project is about 30 days away from introduction to planning. We expect to begin construction in 2Q of 2015. The hotel is a 120-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. However, permits need to be renewed, which could take about 4 months to complete. The company fully expects to be able to obtain a hotel construction loan from a national bank to finish the project. Here is a link to the a presentation:
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 has executed and LOI to acquire the project. The company expects to close this acquisition within the next 30 days approximately. For more information, please see: www.ikal1150.com
JV Agreement with Prohotels: In its refocusing of the company's business plan to hotel development, Metrospaces has executed a JV Agreement with Prohotels (http://www.prohotels.com/). Prohotels is the sole marketing partner for Small Luxury Hotels in the Americas (slh.com) and the operating partner for Luxury Hotel Partners (http://www.luxuryhotelpartners.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, since demand is expect to exceed the capacity of 50 hotels in the area we are currently operating in.
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!
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 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 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 America's and across Europe valued in excess of US $350 Million.
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.
Contact Information:
Company Contact:
Tel: 305-600-0407
Investor Relations:
investors@metrospaces.net