Metrospaces, Inc. (OTCQB: MSPC) Issues correction of Press Release from April 7, 2014 of acquisition of a one-third interest in a 20,000 m2 lot to build a 120-room hotel in the Venezuelan Orinoco Oil Basin. Metrospaces confirms the acquisition of lot for Hotel in the city of Pariaguan, correcting that the LOI was executed in December of 2013.
Mr. Brito, stated, "We are very pleased to have executed this acquisition. It marks the beginning of our heighted focus on the hotel and hospitality industry. We think there is an unparalleled opportunity for hotels in the Orinoco Oil Belt, and this is our first step in that direction. This is a play on the biggest investment in oil and gas development in the world for the coming 15 years. We will be one of the first hotel entrepreneurs to be present in the development of the Orinoco Oil Belt Basis. Venezuela has recently had this area certified as the biggest oil reserves in the world, according to the state oil company, PDVSA (http://en.wikipedia.org/wiki/Orinoco_Belt.) According to forecast, once finished this hotel will carry an average occupancy rate of over 90%, which is extraordinary for a business hotel in Latin America. Additionally, we expect to be able to charge very high room rates, even though this will be a 3-star hotel. Our forecast is for this operation to generate approximately $3 million in EBITDA. Additionally, this hotel can be a foothold in the area and the first to come since PDVSA's forecast calls for a development of at least 50 hotels in the area to satisfy forecasted demand. This project gives us the opportunity to be pioneers in the hotel industry in the Orinoco Oil Belt. It's an exciting opportunity for us." Additionally, Mr. Brito added: "We have been committed to this project since we executed the LOI, therefore have been working with architects and engineers to get planning approval, so we will hit the ground running on this one. The project will be financing with a 20% equity participation, and 80% will be provided by a local commercial bank. These construction loans for hotels are currently readily available in the market, and we expect a lot of interest from banks due to the strategic importance of the area."
Metrospaces was originally founded by company President Oscar Brito.
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 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 America's 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 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.
The Orinoco Oil Belt:
The Orinoco Oil Belt is a region in central Venezuela, were PDVSA recently had its oil reserves certified as the biggest in the world. According to PDVSA, it is expected that a total of $250 Billion must be invested in order to develop the area into producing fields. This area completely lacks of all basic infrastructure including hotels.
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SOURCE: Metrospaces, Inc.