SAN DIEGO, CALIFORNIA, July 22, 2021 (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.
It is a pleasure to address you as President of International Land Alliance, to which I was appointed alongside the Company’s investment in Rancho Costa Verde in May. Having been involved with real estate development and marketing in northern Baja California for the last two decades, I am closely aligned with ILA’s core mission of embracing technology to bring sustainable residential developments to the region.
When I co-founded Rancho Costa Verde in 2008, we set out to create a master planned community that could operate entirely on green energy solutions. While there were some challenges, personal sacrifices, and naysayers, we proved that developing a solar-powered, beachfront community of residences in Mexico was possible through hard work and persistence.
To date, we have sold 900 homesites and completed construction for 47 out of the 1,100 total residential homes planned for the community, with 18 homes currently under construction and 20 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 and 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.
My experience has afforded me a wealth of knowledge in ecological real estate development, green technology, green construction, marketing, sales and resident relations, all of which are my focus areas as President of ILA. My business partners at Rancho Costa Verde, Michael Cresci and Robert Rios, are also tenured in these areas and they will also be working closely with the ILA team on our exciting projects. Importantly, our vast collective network of California-based realtors will be instrumental for driving referrals and sales across the ILA properties.
I have known Roberto Valdes and Jason Sunstein for many years, during which we remained in consistent communication, so joining the ILA team has been a seamless transition. Together, we have created a strategy for property improvements and sales and marketing initiatives, which we are currently executing against.
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 have accepted reservations to purchase 20% of available inventory for Phase I of the project. We also have a dedicated partner for solar-plus-storage power solutions at our properties, CleanSpark, Inc., which serves as our exclusive partner for the installation of solar solutions across our portfolio, including the model homes at Plaza Bajamar. At a $199,000 starting price, this represents an approximate $16 million gross sales opportunity for the 80-unit project.
At Valle Divino, our development directly across the road from Plaza Bajamar in Ensenada, we completed the first stage of construction in January of this year. In addition to the cost advantages of these residences, which are just 50 miles south of the already high and growing Southern California housing prices, we are seeing strong interest in the technology such as self-contained solar, as well as our test vineyard at the property which will ultimately consist of 11 grape varieties. To date, we have 14 pre-sales for properties at Valle Divino. At a starting price of $89,000 per completed home, this represents an approximate $60 million gross sales opportunity for the 650-homesite project.
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 in June, and will begin Phase II construction this summer. Leveraging the RCV sales and marketing team, we expect to receive over $60 million in gross lot sales at the resort alone, and we expect to receive additional revenue from the construction of single-family homes at Oasis Park.
Allow me to comment on Emerald Grove Estates, our newly renovated Southern California property. We have resumed hosting organized events at its 8,000 square foot event venue, where our guests enjoy the 360-degree, unobstructed views of Temecula wine country. We have also been opportunistic with the use of land at the property, as we have ramped up a CBD hemp growing operation that currently consists of 10,000 outdoor plants, and expect to plant an additional 10,000 over the next month. We have a dedicated growing partner with established sales and distribution channels that offer a potential monthly revenue of $62,500 for the outdoor growth operations alone, while allowing us to remain focused on our real estate developments. In addition, we have recently sold 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.
Lastly, ILA maintains a very clean structure, with all of our Baja California portfolio assets owned outright at an appraised value of approximately $27.5 million, although these assets are accounted for on the balance sheet at cost of $4.2 million. Our management team is closely aligned with our shareholders, with notable insider ownership of over 45%.
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.
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.