SAN DIEGO, CA, Jan. 10, 2023 (GLOBE NEWSWIRE) -- International Land Alliance, Inc. (OTCQB: ILAL), (“ILA” or the “Company”), an international land investment and development firm, announced today, the following open letter to its shareholders from Chairman Roberto Valdes.
To Our Valued Shareholders:
First and foremost, we would like to express our gratitude to all our shareholders for their continued support of the Company. The leadership team at the Company endeavor to communicate important corporate events and activities. We welcome this opportunity to share our thoughts and insights as to the past year and our plans going forward.
The year 2023 will mark the beginning of a new chapter for International Land Alliance, Inc as we have completed the acquisition of the remaining 75% interest of Rancho Costa Verde (“RCV”) and now owns 100% and is operating as a wholly-owned subsidiary.
This Company acquired the remaining 75% interest in RCV for $13.5M for a combination of debt and equity. This is an accretive acquisition that met the Board of Directors’ investment criteria.
RCV is a profitable 1,100-acre, 1,200-lot master planned community in Baja California, located roughly eight kilometers north of the Company’s Oasis Park Resort on the Sea of Cortez. For more information about this green off-grid community, we invite you to visit: www.ranchocostaverde.com To date, RCV has sold over 1,000 residential lots and built 55 single-family homes with 34 under construction. This is in addition to a completed boutique hotel and clubhouse.
For the 12 months ended December 31, 2022, RCV has sold 67 residential lots (starting with 6 lot sales in Q1 and accelerating through December and regaining sales momentum to pre-covid levels), generating almost $7M in gross revenues (roughly $2,200,000 in lot sales and commenced signing contracts to begin construction on another 22 single family homes for roughly $4.5M).
The Company has scheduled its first sales tour to RCV this weekend and will continue to sell the remaining inventory of approximately 200 lots for estimated gross sales of $6M and sell construction services to current 900-lot owners for estimated gross sales of $180,000,000 (estimated at $200,000 per home). As the land cost and majority of sales and marketing costs are recognized in the lot sales, we see significantly higher margins in the ongoing home construction.
Further, RCV has also expanded its real estate holdings with one large parcel in escrow that will add 200 acres. This new phase will have gross potential lot sales of approximately $6,000,000 and in excess of $40,000,000 in construction revenue.
Just as important as the financial aspects of this transaction, the Company will be adding personnel in engineering, construction, as well as key new officers, Michael Cresci and Robert Rios, as well as an established network of over 50 real estate agents throughout California.
Michael Cresci, V.P Sales
Mr. Cresci has over 40 years of experience in sales and marketing management of master-planned communities and over 15 years of recent experience with master-planned communities in Baja California, Mexico. Mr. Cresci is co-founder and president of R-MAC which produced over $500,000,000 in Baja California real estate sales volume within ten years. Mr. Cresci’s educational background includes a Bachelor of Marketing and Finance degree from the University of San Francisco. Mr. Cresci holds a California Real Estate Salesperson License, a Nevada Real Estate Broker License, and an Arizona Real Estate Broker License.
Robert R. Rios. V.P. Marketing
Mr. Rios has over 30 years of experience in sales and marketing management of master-planned communities and over 15 years of recent experience with master-planned communities in Baja California, Mexico. Mr. Rios is co-founder and executive vice-president of R-MAC which produced over $500,000,000 in Baja California real estate sales volume within ten years. Mr. Rios is an accomplished public speaker and real estate sales trainer. Mr. Rios holds a California Real Estate Salesperson License, a Nevada Real Estate Broker License, and an Arizona Real Estate Broker License.
Mr. Cresci and Rios will be instrumental in deploying similar sales and marketing initiatives for the Company’s other projects, along with the recently announced mortgage division.
The mortgage division is in place and is currently in the funding process through a newly-formed series of preferred stock. The Company believes its immediate capital requirements will be met through current funding initiatives, including this preferred financing. This division will provide financing to U.S. citizens for finished homes and construction financing at our communities in Baja California, Mexico. This type of financing has not been available to U.S. citizens in the past. This is important to the Company since our primary target market is U.S. citizens. The Company currently has a significant number of clients and homes qualified for this financing. We expect to close our first home financing contract in Q1 2023.
At our Plaza Bajamar community, located within the internationally renowned Bajamar Ocean Front Hotel and Golf Resort, we recently held our first open house at our completed Merlot model home. The Bajamar Ocean Front Golf Resort is a master-planned, guarded and gated wine and golf community located 45 minutes south of the San Diego-Tijuana Border along the scenic toll road to Ensenada on the Pacific Ocean. Phase I will include 22 “Merlot” 1,150 square-foot single-family homes that feature two bedrooms and two baths. The home includes two primary bedroom suites – one on the first floor and one upstairs, as well as fairway and ocean views from a rooftop terrace. The Merlot villas will come with an optional installation of solar packages, as they are built with truly sustainable construction in mind. Planned amenities include a pool, wellness, and fitness center, and office space. During the year-end 2022, the Company sold another 3 villas at an average price of $225,000 with revenue expected to be recognized in Q1 2023. Plaza Bajamar represents almost $20 million in gross sales opportunity for the 80-unit project.
Please visit: https://ila.company/plaza-at-bajamar/
At Valle Divino, our eco-friendly development directly across the road from Plaza Bajamar in Ensenada, we completed construction of the clubhouse, wine tasting room, and sales office and started construction on the first two model homes. We had our Grand Opening in June 2022 and commenced onsite tours. Residential lot prices at Valle Divino start at $49,000 and the completed 1BR/1BA solar-powered homes start at $99,000 with 2BR/2BA starting at $119,000. Phase 1 of the development includes 187 homes. For year-end 2022, we had 14 pre-sales – revenue expected to be recognized in Q1 of 2023. At an average of $110,000 per completed home, this represents over $70,000,000 in gross sales opportunity for the 650-homesite project.
Please visit: https://ila.company/valle-divino-resort/
At Oasis Park Resort, located just 8 km south of Rancho Costa Verde, we have already pre-sold 75 of the 1,344 planned residential lots in the community to initial stakeholders. We resumed Phase I construction at Oasis Park and to date, we have completed the entryway structure, the initial stages of the two-mile main road from the highway to the Sea of Cortes, finalization of the design of the first phases of the master plan, and initial beach grading. We expect to complete the finishes on the entryway, move forward with the clubhouse and model home construction in Q1 2023. This represents over $30,000,000 in gross lot sales potential, followed by over $75,000,000 in gross potential construction revenue. We expect to have the Grand Re-Opening in Q1 2023 and will commence onsite sales tours.
Please visit: https://ila.company/oasis-park-resort/
https://www.globenewswire.com/news-release/2023/01/10/2586102/0/en/Chairman-of-International-Land-Alliance-Issues-New-Year-s-Open-Letter-to-Shareholders.html