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 accordance with Article 8.2 of Regulation (EU) 2020/1503 of the European Parliament and of the Council of October 7, 2020, on European crowdfunding providers, we hereby inform you that partners, executives, and employees of wecity may invest on this occasion. 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 NUEVO VALKEY GESTIÓN INTEGRAL S.L. is seeking financing through wecity to cover the construction costs of a development consisting of a 6-unit multifamily building in Brunete (Madrid) and, in turn, to finance the purchase of a plot of land in Fuente el Saz de Jarama (Madrid), where a development of 4 townhouses will be built.

Although these are two separate projects, the funding will be provided as a single grant. Of the total €620,000 loan in this first phase, €370,000 will be allocated to the development of Brunete, and the remaining €250,000 to the development of Fuente el Saz del Jarama.

The opportunity involves financing Phase I of the loan in the amount of €620,000 at a fixed rate, which will be secured by a mortgage on 1^first first-degree^1stdegree on the two assets and will have a term of approximately 12 months (+3 months of possible extension). This loan will correspond to the first phase of a total loan, which may amount to a maximum of €1,120,000 in two phases.

· Brunete, Madrid ( 8 Madrid Street)

The lot has a total area of 386^m2 and a buildable area of 440^m2. From a zoning perspective, the building permit has been granted, and construction has already begun; according to the appraisal, the project is 38% complete. In terms of sales, all 6 units have been sold (100% of the total development). To date, the developer has contributed €388,000 in equity . In this case, the purpose of the financing is to fund the construction work.

· Fuente el Saz de Jarama, Madrid ( 47 Madrid Street)

The lot has a total area of 1,396^m² and a buildable area of 679^m². From a zoning perspective, the building permit was applied for in 2025. Marketing will begin once the permit has been granted. To date, the developer has contributed €225,000 in equity, which has been used to partially fund the acquisition of the property. In this case, the financing is intended entirely for the acquisition.

Investors are expected to exit wecity through the sale and delivery of the homes in the Brunete development and/or through the receipt of bank financing for the Fuente el Saz project.

The project

Brunete Project: 6-unit apartment building

Fuente el Saz Project. The developer will build a development consisting of 4 townhouses on the financed lot.

Location and surroundings

Brunete, Madrid ( 8 Madrid Street)

Fuente el Saz de Jarama, Madrid ( 47 Madrid Street)

Mortgage collateral

The loan will be secured by a^{first-priority} mortgage on the assets located at:

· Brunete, Madrid ( 8 Madrid Street).

· Fuente el Saz de Jarama, Madrid ( 47 Madrid Street)

According to the appraisal reports prepared by Gesvalt for the Brunete property and by Tasa for the Fuente el Saz property, the current combined ECO appraisal value totals €989,897.46, and the combined HET ECO appraisal value totals 2,036. 409.88 €—which takes into account the sum of the ECO HET appraisal for Brunete (since construction costs will be financed) and the current ECO appraisal for Fuente el Saz (since land will be financed and no construction is planned during the term of the loan). The first drawdown of the loan will be 416,102.00 €, which represents a Loan-to-Value (LTV) ratio of 42.03% based on the current combined ECO appraisal and the combined ECO HET appraisal³: €2,036,409.88 for the combined ECO HET appraisal, resulting in an HET LTV of 54.99%.

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.