Description

WECITY complies with Law 5/2015 and with Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European providers of crowdfunding services for companies. It is authorized by the CNMV as a Participatory Financing Platform registered under number 30, with a favorable proposal from the Bank of Spain.

Proyectos Alba-Salina SL requests financing from wecity for this investment opportunity.

Investor, before making your investment please read the basic information for the investor client. Past performance does not guarantee future performance.

The investment

It consists of a loan in the amount of €1,500,000 at a fixed rate with a 1st degree mortgage guarantee, corresponding to PHASE I of the total financing, which may amount to a maximum of €2,100,000 in 2 phases. The objective is to finance the acquisition and completion of work (12.75% execution of the current state) of a residential development located at Calle La Herrada, plot 12.1, Los Montesinos (Alicante).

The plot has an approximate registered area of 3,302 m2. The development consists of a total of 14 single-family homes with private garden and swimming pool. The pre-sales level is 42.85% (6 of 14 documented reservations for an amount of 407,014 €).

The developer has already linked its own funds to the project in the amount of €479,934 and €407,014 of down payments already made by the buyers. These amounts, together with the €2,100,000 requested from the wecity investors and the future down payments from the buyers, total the €4,479,634 required for the development of the promotion. It should be noted that the activation of PHASE II will be conditioned to the cancellation of the 4 homes of this project.

Through wecity you can participate in a fixed rate loan operation with an annual interest rate of 12% for an estimated term of 9 months (6 months of obligatory compliance) with the possibility of an extension of 3 additional months. The total estimated return is 9% for 9 months (or 12% if the final term is with the 3-month extension).

Interest payment + return of the invested capital will be made at maturity.

With a minimum investment of 500 € and no investment limit, you can participate in this opportunity with an excellent profitability and with the maximum guarantees.

Valuation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €1,685,059. This represents a Loan to Value (LTV) over the current appraisal of 89.01%.

The appraisal on the assumption of a finished building amounts to € 5,539,979. This represents a Loan to Value (LTV) on HET appraisal of 37.90%.

The Loan to Value (LTV) on first disposal is 50.47%.

The project

The project involves the acquisition of the plot and the completion of the construction of 14 single-family homes, with private garden and swimming pool.

Imágenes de vivienda similar de fases anteriores

Environment and location

The project is located in the town of Los Montesinos (Alicante). Located in the triangle formed by the cities of Alicante, Murcia and Cartagena, access to these cities is fast and through roads in a perfect state of preservation. In addition, the town of Torrevieja, one of the coastal cities with more tourist tradition of the Valencian community is only 10 km away. The municipality of Los Montesinos, is surrounded by farmland, and by the great natural beauty that gives the views of the Salinas de Torrevieja..

The mortgage guarantee

The loan will have as 1st degree mortgage guarantee the plot of land and the building, located at Calle La Herrada, Parcela 12.1, Los Montesinos (Alicante).

The independent appraisal company in charge of identifying the value is GESVALT , whose corporate name is GESVALT SOCIEDAD DE TASACIÓN SA, and is registered as an approved appraisal company by the Bank of Spain under number 4,455.

According to the appraisal report prepared by GESVALT, the current appraisal amounts to 1,685,058 €.

The loan to be made to the developer is 1,500,000 €, which means a Loan to Value over the current appraisal of 89.01%.

Guarantee agent

The constitution, preservation, management, administration and, if applicable, enforcement of the real estate mortgage rights on behalf of the investors will be carried out by an entity external to wecity.

In this case the designated Collateral Agent is BONDHOLDERS.

Bondholders, is a professional company specialized mainly in providing independent commission agent and escrow services over different asset classes and under numerous international jurisdictions.

In recent years Bondholders has been mandated as agent and arranger in more than 400 transactions representing a total of nearly 200 billion euros in debt.

Its main clients include, among others, financial institutions, institutional clients, asset managers, sovereign government agencies.

Currently one of the leaders in Europe in providing independent fiduciary services.

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.

Keys

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.