SAN DIEGO, CALIFORNIA, June 09, 2022 (GLOBE NEWSWIRE) -- International Land Alliance, Inc. (OTCQB: ILAL), (“ILA” or the “Company”), an international land investment and development firm, today issued a letter to shareholders from its President, Frank Ingrande.
Dear Shareholders,
Thank you for your continued support and loyalty. It is our personal commitment to engage our shareholders with clear and consistent communication and provide timely updates. We wish to highlight our recent accomplishments and strategic roadmap. During the past year, we have achieved several strong milestones, outlined below.
As President of International Land Alliance, to which I was appointed alongside the Company’s investment in Rancho Costa Verde in May of 2021, I would like to provide additional details in the development and sales process to better understand these achievements, strategic roadmap, revenue recognition, as well as the 2021 Annual Report, as filed with the SEC on Form 10-K, and three months ended March 31, 2022, as filed with the SEC on Form 10-Q.
From a high level, ILA’s core mission is embracing technology to bring sustainable residential developments to Northern Baja California.
- Clarification of 2021 goals/accomplishments and sales models
- Raised capital for and began developing projects to begin sales
- Development included construction of roads, entryways, clubhouses, model homes, and location designation of properties for sale
- The Plaza at Baja Mar was first to be completed to the point where sales can and have commenced in 2022. The Valle Divino and Oasis projects are planned to follow suit in the second (Grand Opening scheduled for June 11, 2022) and fourth quarters of 2022 respectively.
- The sales model for the Plaza at Baja Mar and Valle Divino is the following:
- Clients select their model and property location
- Execution of reservations / execution of purchase/construction agreements following
- Initial payments are collected
- Home Construction begins
- Collection of additional payments with associated construction milestones
- Completed homes are delivered to clients simultaneously with collecting final payments
- The sales model for Rancho Costa Verde and Oasis Park is as follows
- Purchase agreements for home sites are executed and paid by clients
- Custom homes are constructed when purchasers decide to do so
- Initial Construction payments are collected
- Home Construction begins
- Collection of additional payments with associated construction milestones
- Completed homes are delivered to clients simultaneously with collecting final payments
As of today, Rancho Costa Verde has sold over 900 homesites and completed construction for 50 out of the 1,200 total residential homes planned for the community, with 26 homes currently under construction and over 30 new homes in the planning stage. Buying demand is increasing at the property, both in terms of lot sales as well as lot owners building homes and relocating, while we have significantly reduced our advertising and marketing expenditures. We even have an incredible on-site boutique hotel where we offer our guests a preview into luxury Baja California living. I believe Rancho Costa Verde is the first of its kind, I am proud to see many people now call the community home, and I believe the learnings from the process will be invaluable for developments across the ILA portfolio.
Please visit: www.ranchocostaverde.com
Allow me to provide a few progress updates for each of our current projects.
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 includes 22 “Merlot” 1,150 square-foot single-family homes that features 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 option 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. The Company has accepted a $5,000 deposit for 5 Merlot villas, followed by a down payment of 20% within 30 days and the balance paid over construction milestones to completion. Based on the strong demand, the Company has increased the prices from $199,000 to $239,000. At a $239,000 starting price, this 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 expect to have our Grand Opening in June 2022 and will commence 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. During 2021, we had 14 pre-sales – revenue expected to be recognized in Q3 of 2022. 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 at 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 the second and third quarters of this year and commence sales at the beginning of the fourth quarter. 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 October 2022 and will commence onsite tours.
Please visit: https://ila.company/oasis-park-resort/
We have recently resumed hosting organized events at its 8,000 square foot event venue at our Emerald Grove development on Southern California., where our guests enjoy the 360-degree, unobstructed views of Temecula wine country. In 2021 we recognized the sale of a vacant 20-acre parcel of the property for approximately $630,000 – an excellent return on investment for one-fourth of the 80-acre property that ILA originally purchased for $1.1 million. We are in the process of subdividing the remaining vacant 40 acres. Median prices for 5-acre lots in the surrounding area are currently $250,000, creating a profitable exit opportunity and additional income as we continue to ramp up the sales and marketing of our Baja California developments and primary business.
We enter 2022 in a strong position, strengthening our balance sheet by successfully raising $2 million, which we utilized for construction, sales, and marketing - essentially getting each of our development projects to a point of grand opening, onsite tours, and sales.
ILA is uniquely positioned to oversee a portfolio of properties unlike any other – self-sustaining, luxury homes at an incredibly attractive price point. We have the resources, experience, and leadership to realize this vision, ultimately creating sustainable value for all of our stakeholders, and I look forward to providing updates as we execute against our strategy.
Sincerely,
Frank Ingrande
President
About International Land Alliance, Inc.:
International Land Alliance, Inc. (OTCQB: ILAL) is an international land investment and development firm based in San Diego, California. As its’ core mission, the Company has embraced technology for sustainable and socially responsible solutions, in addition to using proptech and construction tech advanced applications to meet these goals. The Company is focused on acquiring attractive raw land primarily in Northern Baja California, often within driving distance from Southern California. The Company serves its shareholders by devoting considerable time and resources to seeking out the finest sites available and obtaining the necessary development permits to build a compelling portfolio of properties, which provide a diversity of investment and living options. Please visit: www.ila.company.
Safe Harbor Statement
The press release may include certain statements that are not descriptions of historical facts but are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, and other forward-looking terminology such as "may," "expects," "believes," "anticipates," "intends," "projects,” or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectation and actual results may vary (perhaps materially) from certain of the results anticipated herein.
CONTACT:
International Land Alliance, Inc.
Jason Sunstein
Email: jason@ila.company
Phone: (877) 661-4811
