MIAMI, FL / ACCESSWIRE / January 15, 2015 / Metrospaces, Inc. (OTC Pink: MSPC) (PINKSHEETS) announces project update and earnings guidance for the coming 36 months.
COMPANY UPDATE AND EARNINGS GUIDANCE:
In continuation, here is an update on our projects and operations:
Management and Corporate Governance: The founding principal of Metrospaces was access to the best real estate entrepreneurs in emerging markets. We always intended to bring on board the best talent as senior management and board in order to insure our success and corporate governance. In this sense, we added world-class hotel entrepreneur Daniel Silva as CEO, and Mr. Alex Batalles (you can see their CVs at: http://www.metrospaces.biz/#!team/c1o0k).
PROJECTS:
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. With the finalization of this acquisition, Ikal Lodge and Winery becomes our flagship project. Mestrospaces acquired not just the real estate project, but also the "Ikal Wine" and Ikal 1150" brands. The wine business is already generating $250,000 in revenue which will be added to MSPC's top line starting 1Q of 2015. The hotel will be operated by Prohotels and marketed as a Small Luxury Hotel property.
Earnings Forecast:
Expected Villa Real Estate Revenue and EBITDA: $100 million with $45 million EBITDA in 5-6 years.
Wine and wholesale grape Revenue and EBITDA: $250,000 and $75,000 respectively.
Hotel operating annual revenue and EBIDA: $3.5 million with $1.5 million in EBITDA once stabilized.
Winery Revenue and Total EBITDA: $8 million and $2 million in EBITDA www.ikal1150.com.
Here is a link to the presentation:
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 the qualification from the Ministry of Tourism as a Touristic Hotel Project, back in December 2014. This is the most difficult banks requirement in order to obtain a hotel construction loans. We still need to obtain final city planning, however the company expects to obtain final planning and financing approval by end of 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.
Earning Forecast Once Stabilized:
Hotel Operations: $ $5.9 million in revenue and $2 million in EBITDA.
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 within the next 4-6 months. Here is a link to the presentation:
Earning Forecast Once Stabilized:
Hotel Operations: $ $5.9 million in revenue and $2 million in EBITDA.
Here is a link to 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.
Earning Forecast: Total Revenue of $18 million with an EBITDA margin of $10 million in EBITDA. Expected IRR is over 100%.
JV Agreement with Prohotels Argentina: In its refocusing of the company's business plan to hotel development, Metrospaces has executed a JV Agreement with Prohotels Argentina. Prohotels Argentina manages and operates 23 hotels in the Americas. 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 15 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. It is operated by 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 $350Million.
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 $450Million.
Metrospaces' majority shareholders have partnered with Investors on Elite properties including The London BLVGARI 5 Star Hotel, The Ikal del Mar and Hotel Esencia projects in Playa del Carmen, Mexico 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.
Relevant Links:
http://metrospaces.net/
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.
Investors should do their own due diligence and research before deciding on a possible investment.
CONTACT:
Metrospaces, Inc.
Tel: 305-600-0407
Investor Relations
[email protected]
SOURCE: Metrospaces, Inc.