Our new pick for tonight is MSPC!
MSPC has a chart to die for, and we plan on living to see it happen!
Trading at just under a penny, MSPC has the ability to create TRIPLE DIGIT gains...
KEY HIGHLIGHTS
A key part of MSPC’s business model execution is the fact that the company will maintain a cost structure that will include a very low overhead, with incentives across the board to all company employees and management.
In particular, Senior Management’s compensation is based in company equity, therefore are incentivized to create high IRRs to shareholders. Currently, Metrospaces, Inc. is looking at different opportunities of which some are already being executed on.
The real estate market is and has been a fairly competitive industry worldwide.
Nonetheless, like in every industry, there are those that separate themselves from the rest due to simply and complete adherence to execution in product quality and financial performance.
As in the past, Metrospaces, Inc. will strive to achieve the highest level of execution in each project they participate in.
In order to best achieve these results, MSPC has realized what a set up in the style of a boutique private equity firm gives. This management structure allows for lots of flexibility in its business execution.
This allows for a very low overhead, and gives management the proper Incentives to create returns on investment.
Management has a very high stake as shareholders, so incentives are very much in line with investors/shareholders. Additionally, due to management’s track record and background, this management team brings special attributes to perform under this business model.
MSPC is a US-based publicly traded real estate private equity firm specializing in small and mid-sized real estate deals in emerging markets.
MSPC recently announced two exciting updates:
• The execution of joint venture agreement with Buenos Aires based merchant bank Proideas opened a possible window to the execution of the Ikal Lodge and Wine and hotel projects in Venezuela the forecast for the Ikal Lodge and Wine has been to generate approximately $95 million in revenue, with a 45% EBITDA in about 4 years. Additionally, once stabilized, the hotel is forecasted to generate about $2.5 million in annual revenue, with approximately $1 million in EBITDA. Wine sales at winery and export is expected to generate approximately $8 million in annual revenue with about $2 million in EBITDA.
• The acquisition of property in Tulasi Mandir Hotel and Spa and Hotel Santo Cristo with expected revenue and EBITDA on rooms and food & beverage will of about $3.1M and $1M respectively. Construction cost and FF&E is expected to be at around $3.1M, and financing is expected to come from a local bank. MSPC owns a 50% stake and is the sole developer.
Additionally, MSPC invests in real estate-based operating companies such as hotel operators, and real estate-based corporate reorganizations.
MSPC is an entrepreneurial project founded by some of the partners of GBS Capital Partners, a Latin American based Merchant Banking firm, specializing in cross-continent financing and investing. The latin-based capital has invested and directly and indirectly funded world-wide real estate projects, including the London Bvlgari Hotel. The approximate amount of financing either invested or raised by GBS Capital Partners is in excess of $350 million.
MSPC has made a special focus on its business plan to create and earn the trust of some of the world´s most important real estate entrepreneurs, particularly in emerging markets.
MSPC also recently added Mr. Daniel Silva to its CEO position, bringing world-class hotel operation, development and financial expertise to Senior Management.
MSPC’s early phase projects also consist of:
• The “Finca El Naranjo” that will be transformed into a tourism and real estate development composed by 32 “fincas” (plots) with an average area of 45 hectares (112 acres) and a small luxury hotel, offering a unique and exclusive jungle retreat.
• Ikal Lodge & Winery is a 75-hectare property located in The Uco Valley, Mendoza.It is a privileged location, just kilometers from some of the world’s most recognized wine makers. (Rothschild, Sallentein, Sophenia, Andeluna, Reina Rutini, Lurton, Clos de los Siete, Monteviejo, Rolland among many others). This area is well-known as the “Golden Mile” of wine makers in Mendoza. Total sale of villas under fractional ownership scheme is forecasted to generate approximately $95 million in revenue, with a 45% EBITDA in about 4 years. Additionally, once stabilized, the hotel is forecasted to generate about $2.5 million in annual revenue, with approximately $1 million in EBITDA. Wine sales at winery and export is expected to generate approximately $8 million in annual revenue with about $2 million in EBITDA.
• Located in the City of Pariaguan, in the heart of the Orinoco Oil Basin reserve in Venezuela, The Hotel Cristo de Pariaguan will be the only 4-star hotels in the area, servicing a bustling population of middle and high management executives that daily commute to the area. The area is completely underserved with hotel infrastructure. The best hotel in the area has seen a rise in the net dollar daily rates of 60% just in 2014. Based on other 4-star hotels located in adjacent cities, once stabilized Metrospaces expects to charge approximately $110-$140 per night, per room. Expected occupancy rate is expected to remain above 85% all year round. If this projection stays, expected revenue and EBITDA on rooms and food& beverage is of about $6.3M and $2.4M respectively. Construction cost and FF&E is expected to be at around $7.2M and financing will come from a local bank. MSPC owns a 1/3 stake and is be the developer.
• Tulasi Luxury Villa Spa and Hotel - Coche Island is one of the Caribbean’s hottest Paradise-like Islands. The Island currently has only 3 hotels, with only 2 additional lots for hotels. Coche Island has one of the highest hotel occupancy rates in the Caribbean, boasting an average of 75% occupancy rate. Based on other 5-star hotels located in adjacent cities, once stabilized Metrospaces expects to charge approximately $285-300 per night, per room. Expected occupancy rate is expected to remain above 75% all year round. Expected revenue and EBITDA on rooms and food& beverage will of about $3.1M and $1M respectively. Construction cost and FF&E is expected to be at around $3.1M, and financing is expected to come from a local bank. MSPC owns a 50% stake and is the sole developer.
For more information, click here:
http://www.metrospaces.net/
http://finance.yahoo.com/news/metrospaces-announces-joint-venture-agreement-032634945.html
http://finance.yahoo.com/news/metrospaces-announces-acquisition-property-tulasi-200635677.html
BUSINESS SUMMARY
(MSPC - Metrospaces, Inc.)
http://www.metrospaces.net/
Metrospaces, Inc. or MSPC 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. MSPC's 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.
EXECUTIVE INSIGHT
MSPC President Mr. Brito stated regarding the joint venture: "This joint venture agreement will give Metrospaces direct access to some of Proideas private equity deals not just in real estate, but also in middle-market companies across different industries. Additionally, Proideas will work with us in financing and execution of our Ikal Lodge and Wine, as well as our hotel projects in Venezuela. Proideas has been involved in over $100 million in direct financing, investment banking and M&A activities in the last 8 years and is considered a predominant player in the private equity industry in Argentina. It's quite an opportunity to join forces with this exciting group of professionals. As it's well-known, Argentina has up-and-coming presidential elections that will more than likely bring a more market-friendly administration, and this agreement positions ourselves in the country, before an expected upturn in the Argentinean economy. We will immediately start reviewing deals on which we can act upon."
MSPC President Mr. Brito regarding the acquisition stated: "Our original agreement with project owners was for an acquisition under a JV agreement, were Metrospaces acquired ownership rights after execution of the development of the hotels. Under these new agreements, Metrospaces is now a property owner in both projects. This will add further shareholder value by adding significantly to our net assets. Additionally, our ownership stakes are no longer subject to execution of development. This gives us additional options such as the right to flip the investment before we execute full construction and stabilization of the hotels. As the political tides change in Venezuela for more business-friendly governments, we are happy to give ourselves even more options for realizing our investment in these projects. Our main objective is to develop and manage these projects, however, the market could turn much higher, and thus offer us other options which we will carefully analyze in due time.”
For more information, click here:
http://finance.yahoo.com/news/metrospaces-announces-joint-venture-agreement-032634945.html
http://finance.yahoo.com/news/metrospaces-announces-acquisition-property-tulasi-200635677.html
MARKET OUTLOOK
JLL forecast global hotel real estate transaction volume to reach $68 billion in 2015. This represents a 15% increase on 2014 levels and the third-highest annual total on record.
Key Takeaways from the report include:
$68 billion in global volumes expected in 2015
A 15% increase on 2014 levels and the third-highest annual total on record
The Americas will drive global volumes, with an expected $35.4 billion in transactions
Single asset transactions will drive more than 2/3 of deals in 2015
5-8% growth in RevPAR is projected globally
Chinese capital to represent $5 billion in outbound hotel investment
$24.5 billion in hotel trades expected to take place in Europe, the Middle East and Africa
13% more transactions expected in Asia Pacific, lifting deal volume to $8.5 billion
The projection comes on the heels of a robust 2014, when global hotel transaction volume reached nearly $60 billion, a 10% increase over the year before. Private equity investors are fully loaded and under pressure to invest funds. Asian money, driven by outbound Chinese capital, is growing rapidly due in part to increased activity from insurance companies.
The confidence that investors and lenders have in global hotel market performance is expected to remain strong in 2015, with the year representing the highest transaction volume in eight years, as investors are ready to chase after top hotel deals.
Global funds and private equity groups based in the U.S. and Western Europe will lead the charge here, with the U.S., U.K. and Germany as the biggest destinations for private equity capital. Private equity investors will also look to higher yielding markets such as Southern and emerging Europe, as well as resorts and secondary and tertiary locations in the U.S. In Asia, private equity plays will remain limited to core markets.
Globally, single assets will drive more than two-thirds of deals in 2015. This shows just how favorable the
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