Metrospaces, Inc. (OTC Pink: MSPC) (PINKSHEETS: MSPC) today issued a letter to shareholders explaining current state of projects.
LETTER TO OUR SHAREHOLDERS
To Metrospaces Inc. Shareholders:
In our customary practice to keep our shareholders well informed of our current projects, we present this letter. Overall, the company is executing successfully the development of its current project in construction, and moving forward in good pace with projects in LOI and in planning stage. We will be very proactive in keeping our shareholders informed of our business development, to provide the grounds for a long-term investment relationship.
In continuation, here is an update on our projects:
Chacabuco 1353: The project is about 30 days from full completion. As a whole, the project is over 95% executed. Sales started very strong having sold 4 apartment units in the 3rd quarter of 2013. The company began taking in sales deposit according to executed Sales Option Agreements. Sales price was $90,000 for each unit, and they were all sold to a single investor group. Company has been collecting on this sale and has been able to use it to fund new projects.
La Tour 320: Construction is now about 20% executed, and structure is about 55% executed. The project has kept a very strong pace in the construction phase, and we are expecting to finish the project within 12-13 months. Although we have not started sales, we feel very encouraged as we receive nearly 4-5 calls a week from perspective buyers looking for prices and time of delivery. We stand firm on our forecast to sell these units for at least $3,500 per square meter, particularly since we have seen the market move to the $3,800 per square foot range in the last few weeks. We will not be making any pre-sales on this project, as we have complete funding for completion and will wait until the end of the project to be able to realize higher pricing on the units. We expect delivery of these units 1Q '15.
La Tour 450: This project is currently in planning stages. However, we have suffered slight delays in this stage, mainly due to an extended Christmas break in government agencies, and also due to governor elections held in December 8th of 2013.
Caiman Beach Hotel and Spa: We are finalizing documentation, legal and tax structure. However, this has caused a delay in final closing. We are now looking to close on the acquisition on August 15th, 2014.
Orinoco Oil Belt Hotel: In April, we finalized the acquisition of a 1/3 interest in a piece of land to build a 120-room business hotel in the Orinoco Oil Belt area in Venezuela. This area has recently been certified as the world's biggest oil reserves and is expected to receive a total of about $250 billion in exploration investment. The area is completely rural and completely lacks hotel infrastructure. Due to the incredible unmet demand in the area we expect to charge $120-150 per night, and we estimate occupation rate will be above 85%-90% through the life of the project. This will be a 4-star business hotel, with a well-known international hotel brand/operator. Project is currently in architectural stage, with expectations to present planning permit request within 4 months. We expect construction to start within 8-12 months.
Tulasi Mandir Hotel and Spa: The Company has recently executed an LOI to acquire up to 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 will be closing on the acquisition in the next 45 days, and will fund it, likely with internal cash flow. The company fully expects to be able to obtain a hotel construction loan from a national bank to finish the project.
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 exploring the possibility of acquiring a working vineyard in Mendoza, Argentina to build a 28-room ultra-luxury hotel, villa and winery. Additionally, 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 giving us the chance to be where we are! We will continue to work very hard to make your investment in our company a success!
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 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 have 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 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.
SOURCE: Metrospaces, Inc.