Metrospaces Issues Project and Business Plan Update December 2015 - Seite 2

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. All permits have been successfully renewed as of end of October, and we have presented loan applications to Banco Bicentenario, Banco de Venezuela and Banco Provincial BBVA 3 of Venezuela's main commercial banks. We expect to have loan approval in the next 3 months or so. For more information: https://db.tt/StIPXi3H

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 consists 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. We are in advanced negotiations with 3 potential investors to put up 100 financing. We expect to close on this funding before end of 2015. For more information, please see: www.ikal1150.com. For more information: https://db.tt/0OyHd3ZM

Quality of Life Boutique Hotel: The Company has executed and paid for an option to acquire a 22-rooom luxury boutique hotel in Morrocoy, Venezuela. The acquisition is for Bs.300 million which at the official exchange rate, represents approximately $1.5M. Currently, the hotel does about $300,000 in revenue with a 25% EBITDA margin. With our repositioning plan having been executed, we expect to bring it to about $700,000 in revenue with a 35% EBITDA. Financing is expected to come from Banco Bicentenario and to close within 120 days. For more information: https://db.tt/UVUyF3QN

Hotel Santo Cristo de Pariaguan: This is the company's first entrepreneurial hotel project. Metrospaces originally acquired a 1/3 interest in this hotel project, however we are currently negotiating with partners to increase our stake 60%. The project received approval from the Ministry of Tourism, so planning approval and financing are well on track. Currently, the project has been introduced to the City Council and we expect complete planning approval before end of 2015. At that point, we will be approaching 3 of the mayor local banks for total funding. We expect to begin construction in 1Q of 2016. The hotel is a 122-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: https://db.tt/MnqmxbTy