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 in the registry 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 reflection 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 7 October 2020 on European providers of equity finance, it is hereby informed that partners, managers and employees of wecity may invest in this opportunity . 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 Prosperity Grounds, S.L, is requesting financing through wecity to cover the construction costs of a luxury villa in Camí a Premià de Dalt 90, Teià, Barcelona.

The project has the building permit granted. The house has a plot area of 800^{m2 on} which a house of 588.15^m2 will be developed. The villa will have 5 bedrooms, garden and private pool, as well as spectacular sea views, and a construction with high quality materials.

The project will be financed through a mortgage loan in the amount of 750,000 € at a fixed rate, which will have a^1st degree mortgage guarantee. This loan will be thecorresponding to the first phase of a total loan, which may amount to a maximum of €2,000,000 in three phases.

The exit of the investors from wecity will take place with the sale of the villa, which is currently in the process of commercialization and its sale price is 4.200.000 €.

Through wecity you can participate in a fixed rate loan operation with an annual interest rate of 11% for an estimated term of 15 months (6 months mandatory) with apossibility of extension for an additional 6 months.

With a minimum investment of 500 €, you can participate in this opportunity with an excellent profitability and with the maximum guarantees. The total estimated return is 13.75% for 15 months or 19.25% if the final term is with the 6 month extension.

The project

Location and environment

Teià is the most exclusive residential neighborhood on the coast of Barcelona, located in the Maresme region, Catalonia, along the coast of the Mediterranean Sea. This charming village is known for its peaceful atmosphere and rich history, although its modern development has been strongly linked to agricultural and wine-growing activity.

This municipality has an attractive historic center and a number of nature trails that are popular with residents and visitors alike. Today, it is a town that combines tradition and modernity, with an active cultural life and a growing offer of services and stores.

The property is located at the top of the village, known for its breathtaking views of the hillside and the sea. Teià is more than a place to live; it is a haven where nature and tranquility meet, offering a perfect setting for those seeking a balance between modern life and the serenity of the natural environment.

Mortgage collateral

The loan will be secured by a^1st degree mortgage on the asset and the building, located in Camí a Premià de Dalt, Teià, Barcelona.

According to the appraisal report made by Sociedad de Tasación, the current appraisal amounts to € 627,623.36 and the HET appraisal amounts to € 4,114,475.31. The loan to be made to the developer is 750,000 €, which means a Loan to Value (LTV) on current appraisal of 119.49%, a Loan to Value (LTV) on Completed Building Assumption (HET) of 48.61% and a Loan to Value (LTV) on first drawdown of 44.75%.

Collateral agent

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

The Collateral Agent chosen for this project is Ceiba Global Alternative Investments SL, a company dedicated to the provision of fiduciary services by contract or mandate”.

Ceiba Global is a company owned by Ceiba Legal SL, a law firm specialized in alternative financing that provides services to several investment vehicles.

In 2023, Ceiba Legal provided legal advisory services amounting to €150,000,000, formalizing and structuring more than €60,000,000 in alternative financing transactions.

At present, it is one of the most recognized firms in the Spanish market in the structuring of secured debt transactions.

Additionally, Ceiba provides legal advice to wecity throughout the life of the loan, from structuring to foreclosure.

Monitoring

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

Rating

wecity, as a provider of crowdfunding 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 method of credit rating
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.

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.