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 equity finance 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 compliance with Article 8.2 of Regulation (EU) 2020/1503 of the European Parliament and of the Council of October 7, 2020 on European providers of equity financing, we hereby inform you that partners, managers and employees of wecity may invest in this opportunity. These investments will be made on the same terms as those of other investors without receiving preferential treatment or privileged access to information.”
The investment
- Purpose of the loan: To finance construction and technical costs.
- Type: Fixed-rate loan.
- Collateral: 1st degree mortgage collateral.
- Term: 12 months (+6 months possible extension).
- Interest rate: 11.50% per annum.
- Interest payment: at maturity.
- Tasación actual (ECO): 507.099,51 € | LTV actual: 118,32%
- ECO valuation (HET): 2,190,295.15 €: LTV HET: 63.92%.
- First drawdown: 280,837.33 € | LTV 1st drawdown: 55.38% € 1, 837.33
- Rating: AA
- Contributions:
- Cooperative members: 591,000 € (29.55%)
- Wecity loan phase I: 600,000 €.
- Minimum investment: 500 €.
The cooperative ARCÁNGEL SAN MIGUEL S. COOP, managed by Villalar Gestora, requests through wecity the funds to finance the technical and construction costs of the promotion of a building of 14 houses located in Azufre Street, Jerez de la Frontera.
The site has an area of 964m2 on which the project will be developed with 738 m2 of land.2 built above ground and 660m2 below ground. The development consists of 13 one-bedroom apartments of 45-50m2 built and 1 three-bedroom apartment of 90 m2 built, all of them with terrace. In addition, the project has 23 parking spaces, 23 storage rooms and landscaped areas with swimming pool.
The building permit has already been granted and construction began in December 2024, and is at 4.28% completion. They are currently in the earthwork and foundation phase. At the commercial level, 100% of the homes have been awarded(14 out of 14 units) and each cooperative member has made down payments of over €42,000 per home.
The project will be financed through a mortgage loan for an amount of €1,400,000 at a fixed rate, which will have a first degree mortgage guarantee, activating a first phase of the same for an amount of €600,000 (possibility of an additional phase of €800,000).
The cooperative has contributed its own funds in the amount of 591,000 €, which have been used for the acquisition of the asset, payment of technical costs and construction work.
The exit of the investors from wecity occurs with the delivery of the houses to the cooperative members, once the First Occupancy License is obtained.
Through wecity you can participate in a fixed rate loan operation with an annual interest rate of 11.50% for an estimated term of 12 months (6 months mandatory) with the possibility of extending for an additional 6 months .
The payment of interest + the return of the invested capital will be made at maturity.
The project
Location and surroundings
Jerez de la Frontera, in the province of Cadiz, is a strategic destination for real estate investment thanks to its privileged location, connectivity and rich cultural offer. The city combines competitive prices with a growing market, offering opportunities in residential housing, second homes and commercial premises. Its fame as the birthplace of sherry and its growing tourism drive the demand for tourist accommodation. In addition, its proximity to the Costa de la Luz and urban regeneration projects reinforce its attractiveness as an ideal investment location.
In the vicinity of Calle Azufre 15, there are services that increase the interest of the area. The CEIP El Membrillar, the University Hospital of Jerez guarantees access to quality medical services. The historic center, only 3 kilometers away, offers cultural and leisure activities. Nearby bus stops facilitate mobility, making this area an area with great real estate potential.
Collateral and appraisal
The loan will be secured by a1st degree mortgage on the asset located at Calle Azufre, 15, Jerez de la Frontera, Cádiz.
According to the appraisal report prepared by GESVALT, the current appraisal amounts to €507,099.51. The loan to be made to the developer is €591,000, which means a Loan to Value (LTV) over the current appraisal of 118.32%.
The HET value of the asset is €2,190,295.15, and the total of the 2 phases of the loan amounts to €1,400,000, which implies a LTV HET of 63.92%.
Finally, the first drawdown of the loan is €280,837.33, which represents a first drawdown LTV of 55.38%.
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 Fundamental Data Sheet of the investment.
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 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 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. It is not a savings product and it is recommended not to invest more than 10% of your net worth in equity financing projects. You may not be able to assign the investment instruments when you wish. Even if you are able to sell them, you may suffer losses.
Pre-contractual cooling-off period for inexperienced investors
Inexperienced investors have a cooling-off period of four (4) days during which they may, at any time, revoke or desist, at any time, from their investment offer or expression of interest in the equity financing offer without having to justify their decision and without incurring a penalty. The cooling-off period begins at the time the potential non-experienced investor makes an investment offer or expresses interest and expires four calendar days after that date. To exercise their revocation rights, Investors may send an e-mail to the following address: reclamaciones@wecity.io, filling in the “subject” field of such e-mail as follows: “REVOCATION – Opportunity Name – Investor’s first and last name”. In the event that you have made a monetary contribution in connection with the financing offer, such amount will be returned as soon as possible to the wallet that you, as an investor/user of the “WECITY” Platform, have open in the “LEMONWAY” Payment Institution.
Credit risk
Credit risk is defined as the loss that may occur in the event of default by the counterparty in a financial transaction. In this specific case, the risk that the Promoter does not pay the principal and/or interest on the Loan.
Sector risk Risks inherent to the specific sector.
Such risks may be caused, for example, by a change in macroeconomic circumstances, a reduction in demand in the sector in which the equity financing project operates and dependencies in other sectors. In any case, the investor should be aware that adverse economic conditions or cyclical changes may lead to a weakening of the Promoter’s ability to meet its financial commitments in connection with the loan.
Risk of noncompliance
The risk that the project promoter may be subject to bankruptcy proceedings and other events affecting the project or the project promoter that result in the loss of the investment for the investors. Such risks may be caused by a variety of factors, including, without limitation: (serious) change in macroeconomic circumstances, mismanagement, lack of experience, fraud, financing not matching the corporate purpose, failure to launch the product or lack of liquidity. In the event of insolvency of the Promoter, 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 Insolvency Law (hereinafter, the “Insolvency Law”), except for those amounts that pursuant to Article 272 of the Insolvency Law must be classified either as ordinary credit or as subordinated credit, as appropriate.
Risk of underperformance or delayed performance
The risk that the return will be lower than expected or that the project will default on principal or interest payments.
Investment illiquidity risk
The risk that investors may not be able to sell their investment. There is no active trading market for the loan, so the investor may 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.