Description
wecity complies with Law 5/2015 and Regulation (EU) 2020/1503 of the European Parliament and the Council of October 7, 2020, regarding European providers of crowdfunding services for businesses. It is authorized by the CNMV (National Securities Market Commission) as a Participatory Financing Platform registered under number 30, with a favorable proposal from the Bank of Spain.
Quality Spaces SL requests funding from wecity for this investment opportunity.
Investor, before making your investment, please read the basic information for the investor. Past returns do not guarantee future returns.
Project Summary
Quality Spaces SL presents you with an Equity (Appreciation) opportunity, which involves financing the purchase of a plot of land in Torremolinos (Málaga), specifically located at Avenida del Carmelo 2, for the construction of 8 new residential properties with common areas and a swimming pool. The estimated duration of this opportunity is 24 months.
The funding target from wecity is €625,000, which, along with the promoter’s contribution of €135,000, a bank loan of €1,700,000 (approved by a financial institution), and buyer deposits totaling €87,283.75, amounts to a total of €2,547,283.75.
The funds will be used for the purchase of the plot, execution of the construction works, and associated expenses.
The purchase of the plot and the start of construction are expected to take place in April 2023, with an estimated duration of 24 months. The project currently has a valid construction permit, approved bank financing, and documented reservations for 6 out of 8 units.
Through wecity, you can participate in an equity (appreciation) operation with an estimated duration of 24 months, where the promoter contributes 18% of the equity (€135,000), aligning with wecity’s principle of “skin in the game.”
The promoter of this opportunity requests a minimum investment of €500 from wecity investors for a 24-month term.
Valoración y Rating
The current valuation (ECO appraisal) conducted by ST Sociedad de Tasación amounts to €1,592,519.62.
The Hypothetical Completed Building (HET) valuation conducted by ST Sociedad de Tasación amounts to €2,930,626.
An external rating of the project has been requested from the consulting firm JLL, which has assigned it an A rating.
Project
It is a plot of land with an area of 944.74 m2. The project will consist of 8 residential units with common areas and a swimming pool.
Localización
The project is located in the town of Torremolinos (Málaga), one of the main destinations on the Costa del Sol, nestled near the Sierra de Mijas mountain range. The excellent coastline, combined with the pleasant climate, are some of the attractions that this Andalusian town offers, just 12 km from the city of Málaga.
A few meters away, the neighborhood of La Carihuela stands out, with its more than 2 km of beach, which remains a worldwide reference on the Costa del Sol and one of the most characteristic areas of the municipality. Along its promenade, you will find numerous shops, bars, restaurants, and renowned beach clubs.
Key Points
·
· Investment Type: Equity
· Project Type: Residential
· Purpose of Financing:
“Financing intended for the construction of a building consisting of 8 residential units and 9 parking spaces at Avenida del Carmelo No. 2, Torremolinos (Málaga), cadastral reference No. 5230813UF6553S0001QS, according to the Basic Project drafted by architect Mr. Ignacio Ruiz Veguilla, member No. 5.194 of the COA Sevilla; Building Permit No. 2807/2022.”
· Capital Structure:
· Quality Spaces SL: €135,000 (18% of equity)
· wecity investors: €625,000 (82% of equity)
· Bank loan: €1,700,000
· Bank Financing: Approved
· Construction Permit: Granted
· Construction Budget: Finalized
· Estimated Term: 24 months
· Profit Distribution: At maturity
· Minimum Investment: €500
Economic Scenarios:
According to the criteria of the CNMV, in Equity (Appreciation) projects, in addition to the base scenario (favorable) presented by the promoter and verified by wecity, two additional scenarios showing potential variations in the business plan must be published.
To calculate the estimated profitability (ROE), the formula is: ROE = (Income – Costs) / Equity.
Favorable
(I) Estimated Income: €3,000,000
(C) Estimated Costs: €2,744,667.81
(EQ) Total Equity: €760,000.00
Purchase Costs: €451,701.00
Construction: €1,506,838.00
Development: €744,535.06
wecity Commission: €41,593.75
The favorable scenario is the one contemplated by the promoter. The project has a signed construction budget and an ECO appraisal, which establishes the sales price in accordance with the ECO/805/2003 standard.
Moderate
(I) Estimated Income: €3,000,000
(C) Estimated Costs: €2,829,982.09
(EQ) Total Equity: €760,000.00
Purchase Costs: €451,701.00
Construction: €1,732,863.70
Development: €603,823.64
wecity Commission: €41,593.75
The moderate scenario considers a 15% upward deviation in construction costs.
Unfavorable
(I) Estimated Income: €2,700,000
(C) Estimated Costs: €2,839,187.09
(EQ) Total Equity: €760,000.00
Purchase Costs: €451,701.00
Construction: €1,732,863.70
Development: €613,028.64
wecity Commission: €41,593.75
The unfavorable scenario considers a 15% upward deviation in construction costs and a 12% decrease in sales prices.
(1) Estimated income defined by the promoter generated from the sale of the completed project. The sales amount of the project has been verified by a valuation report conducted by an appraisal entity in accordance with the ECO/805/2003 Order of March 27, regarding valuation standards for real estate and certain rights for certain financial purposes.
(2) Cost estimation: includes all costs necessary for the development of the opportunity, the financial resources required to complete the construction of the project, and the financial resources necessary for the development of the promotion not associated with construction, such as sales commissions, promoter fees, bank financing, taxes, etc.
