Description

wecity complies with the provisions of Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European providers of participative financing services for companies and Title V of Law 5/2015 on the promotion of business financing as amended by Law 18/2022 of 28 September on the creation and growth of companies. It is authorized by the CNMV as a Participatory Financing Service Provider, registered under number 9, with a favorable proposal from the Bank of Spain.

Investor, before making your investment, please read the basic information for the investor client, as well as the pre-contractual cooling-off period for inexperienced investors .

Skin in the game: “In compliance with Article 8.2 of Regulation (EU) 2020/1503 of the European Parliament and of the Council of October 7, 2020 on European providers of equity financing, it is hereby informed that in this opportunity partners, managers and employees of wecity may invest. These investments will be made under the same conditions as those of other investors without receiving preferential treatment or privileged access to information.”

The investment

The developer SUN HAVEN DEVELOPERS SL is requesting through wecity the activation of phase II to finance the construction costs of an aparthotel consisting of 18 tourist apartments located at 14 Goya Street, in Valencia.

The land has a total area of 199^m2 and a buildable area of 1,143^m2, where the developer will develop an aparthotel consisting of 18 tourist apartments.

At the urban planning level, the project already has a building permit since July 2024. Construction work has already begun and is 31% complete (+17% compared to the start of the project). The asset will be leased and operated by the developer.

The project will be financed through a mortgage loan in the amount of €550,000 at a fixed rate, which will be secured by a first mortgage guarantee and will have a term of approximately 15 months (+6 months of possible extension). This loan will be the second phase of a total loan, which may amount to a maximum of €1,800,000 in three phases, for the rehabilitation works of the building. To date, the first and second phases together have financed €1,250,000.

To date, the developer has contributed equity in the amount of €1,129,000 for the acquisition of the building and the start of construction.

The exit of wecity investors is planned with the entry of bank financing.

The payment of interest plus the return of the invested capital will be made at maturity.

AInvest

AInvest is not applicable at this time.

The project

Location and surroundings

Calle Goya 14 is located in the area of La Petxina (Extramurs district), a consolidated residential area and very practical to live or invest: quiet streets, lots of neighborhood life and day-to-day services at hand (supermarkets, pharmacies, schools) and good bus connections to the center and the rest of the city.

Nearby points of interest include the proximity to the Botanical Garden of the University of Valencia and the Turia Garden for walking/sports, as well as the Vithas Valencia 9 de Octubre Hospital just a few minutes away. The ongoing redevelopment of nearby axes such as Pérez Galdós/Giorgeta also points to a notable improvement in urban image and mobility, a factor that tends to support demand and value in the area.

Mortgage collateral

The loan will be secured by a^1st degree mortgage on the asset, located at Calle de Goya 14(Valencia).

According to the appraisal report made by ARQUITASA1,356,848.47 and the Assumed Completed Building Evaluation (HET) amounts to € 2,949,776.81 . The loan to be made to the developer in this second phase is 550,000 €, this means a Loan to Value (LTV) HET of 61.02% and a Loan to Value (LTV) 1st Disp of 63.89%.

Collateral agent

The constitution, conservation, management, administration and, if applicable, enforcement of the pledge on behalf of wecity’s investors shall be carried out by an entity external to wecity.

In this case, the designated Collateral Agent will be the one indicated in the loan agreement.

Rating

wecity, as a provider of equity financing services and in compliance with Delegated Regulation (EU) 2024/358 supplementing Regulation (EU) 2020/1503 of the European Parliament and of the Council, provides a description of the credit rating method
of the projects used to calculate the ratings. If the calculation is based on accounts that have not been audited, this shall be clearly stated in the description of the method.

Monitoring

The promoter must justify the use of the funds in each of the applications. The use of the funds by the promoter will be monitored by a company external to wecity.

Compliance with Regulation (EU) 2020/1503 🇪🇺

Risk warning

Investing in this crowdfunding project involves risks, including the risk of partial or total loss of the money invested. Your investment is not covered by the deposit guarantee schemes established in accordance with Directive 2014/49/EU of the European Parliament and of the Council (*). Your investment is not covered by the investor compensation schemes established in accordance with Directive 97/9/EC of the European Parliament and of the Council (**). You may not get any return on your investment. This is not a savings product and you are advised not to invest more than 10% of your net wealth in crowdfunding projects. You may not be able to sell the investment instruments whenever you want. Even if you can assign them, you could suffer losses.

Pre-contractual cooling-off period for inexperienced investors

Inexperienced investors have a cooling-off period of four (4) days during which they can, at any time, revoke or withdraw, at any time, from their investment offer or expression of interest in the participatory financing offer without having to justify their decision and without incurring a penalty. The cooling-off period begins at the moment when the potential inexperienced investor makes an investment offer or expresses interest and expires four calendar days from that date. To exercise their right of revocation, Investors may send an email to the following address: reclamaciones@wecity.io, filling in the “subject” field of the email as follows: “REVOCATION – Name of the Opportunity – Full name of the Investor”. In the event that a monetary contribution has been made in connection with the financing offer, this amount will be returned as soon as possible to the wallet that, as an investor/user of the ‘WECITY’ Platform, has been opened in the Payment Institution ‘LEMONWAY’.

Credit risk

Credit risk is defined as the loss that may occur in the event of non-payment by the counterparty in a financial transaction. In this specific case, the risk that the Promoter will not pay the principal and/or interest of the Loan.

Sector risk Risks inherent to the specific sector.

These risks may be caused, for example, by a change in macroeconomic circumstances, a reduction in demand in the sector in which the participatory financing project operates and dependencies on other sectors. In any case, the investor must bear in mind that adverse economic conditions or cyclical changes may lead to a weakening of the Promoter’s ability to meet its financial commitments in relation to the loan.

Risk of default

The risk that the project developer may be subject to insolvency proceedings and other events affecting the project or the project developer that result in the loss of the investment for the investors. These risks may be caused by a variety of factors, including, but not limited to: (serious) change in macroeconomic circumstances, mismanagement, lack of experience, fraud, financing not fitting with the corporate purpose, failure in the product launch or lack of liquidity. In the event of the Promoter’s bankruptcy, the holders of the credits will be considered as credits with special privilege, as they are secured by a mortgage guarantee, in accordance with the cataloguing and order of priority of credits established by Royal Legislative Decree 1/2020, of May 5, which approves the revised text of the Bankruptcy Law (hereinafter, the “Bankruptcy Law”), except for those amounts that, in accordance with Article 272 of the Bankruptcy Law, should be classified either as ordinary credit or as subordinated credit, as appropriate.

Risk of lower or delayed return

The risk that the return will be lower than expected or that the project will default on the payment of principal or interest.

Risk of illiquidity of the investment

The risk that investors will not be able to sell their investment. There is no active trading market for the loan, so it is possible that the investor will not be able to find a third party to whom to assign the loan.

Other risks

Risks that are, among others, beyond the control of the project developer, such as political or regulatory risks.