Description

Wecity complies with Law 5/2015 and 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.

Projects 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 profits do not guarantee future profits.

Project Summary

The promoter is requesting a loan from wecity for an amount of €800,000 at a fixed interest rate with a first-range mortgage guarantee. The purpose is to finance the completion of a residential development located at 2 Pio Baroja Street, Rojales (Alicante), which is currently at 31.5% completion status.

The land has an approximate registered area of 2,113m2. The development consists of a total of 7 single-family homes with private gardens and swimming pools. The pre-sale level is at 71%, with 5 out of 7 reservations documented for a total amount of €264,184.

The promoter has contributed €358,888 (20.40%) of their own funds, which, combined with €600,273 (34.12%) from payments made by buyers in advance, and the €800,000 requested from wecity investors, adds up to a total of €1,759,162 required for the development of the project.

Through wecity, you can participate in a fixed-rate loan operation with an annual interest rate of 12% and an estimated duration of 12 months (with a mandatory 6-month compliance period). The payment of interest and the return of the invested capital will occur at maturity.

With a minimum investment of €500 and no investment limit, you can take part in this opportunity with an excellent return and maximum guarantees.

ECO Valuation

The current appraisal for mortgage guarantee purposes (according to Order ECO 805/2003) amounts to €580,910.

The loan to be granted to the company is €800,000, with an initial drawdown of €387,390, representing a Loan To Value (LTV) ratio of 66% based on the first drawdown.

The appraisal under the hypothesis of the completed building (HET) amounts to €2,319,464 (for 7 homes), resulting in an LTV ratio of 34.4% based on the HET appraisal.

The independent appraisal entity responsible for determining the value is GESVALT, whose full name is GESVALT SOCIEDAD DE TASACIÓN SA. It is registered as an Authorized Appraisal Company by the Bank of Spain under the number 4.455.

Project

Continuation and completion of the construction works for the development of 7 semi-detached single-family homes with private gardens and private pools.

Floor plan of 7 ground-floor houses (you can see the rest of the plans in the documents section.

Areas and Location

Rojales (Alicante).

Located in the region of La Vega Baja, Rojales is a traditional agricultural municipality traversed by the Segura River in its final stretch before flowing into the Mediterranean. It is a town that blends its traditional cave neighborhoods and deep-rooted agricultural culture with a modern tourist complex. Its urbanisation (Ciudad Quesada, Pueblo Lucero, Doña Pepa, Pueblo Bravo, and Lo Pepín) are equipped with the finest amenities and services, making them a driving force behind residential tourism on the Costa Blanca. In recent years, 5,000 new families have settled in the area.

Collateral

The loan will have a first-range mortgage guarantee on the land and the construction located at 2 Pio Baroja Street, Rojales (Alicante).

According to the appraisal report conducted by GESVALT, the current appraisal value of the land amounts to €580,910.

The appraisal under the hypothesis of the completed building (HET) amounts to €2,319,464 (for 7 homes). This represents a Loan to Value (LTV) ratio of 34.4% based on the HET appraisal.

The loan to be granted to the company is €800,000, with an initial drawdown of €387,390. This results in a Loan To Value ratio of 66% based on the first drawdown.

Security Agent

The establishment, preservation, management, administration, and, if necessary, execution of real estate mortgage rights on behalf of the investors will be handled by an external entity to wecity.

In this case, the designated Guarantee Agent is BONDHOLDERS.

Bondholders is a professional company specialized mainly in providing trustee and independent agent services across various asset classes and under numerous international jurisdictions.

In recent years, Bondholders has been appointed as trustee and agent in over 400 transactions, representing a total of nearly 200 billion euros in debt.

Among its primary clients are financial institutions, institutional customers, asset managers, and sovereign government agencies, among others.

Monitoring

The promoter will be required to provide justification for the intended use of the funds for each disbursement they request. Additionally, an external company, separate from wecity, will be responsible for monitoring the promoter’s use of the funds

Claves

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.