Estepona-Puerta del Mar

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Estepona-Puerta del Mar
Funded / Ongoing

Estepona-Puerta del Mar

Parcela 19, sector SUP R-5 "LAS MESAS" Estepona

LoanInvestment Modality MG1 First Grade mortgage guarantee GroundProperty type AAOpportunity Rating

Funded 100%

1.800.000€

Amount

1.800.000€

597 Investments

Investment Period 12 months

Total Estimated Return 11.00%

Annual interest rate 11,00%

This opportunity has already been funded!

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.

Magallsur Construcciones y Rehabilitaciones SL, requests financing from wecity for this investment opportunity. Investor, before making your investment please read the basic information for the investor client.

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 financing, we hereby inform you 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 investment opportunity consists of financing the acquisition of plot 19 of the SUP R-5 “Las Mesas” sector, Estepona. The plot has an area of 2,578 m2 and a buildable area above ground of 3,696 m2, on which a building of 36 homes will be developed, some of them with excellent sea views. The project includes parking spaces and storage rooms, as well as spacious common areas with swimming pool, coworking space and gymnasium. Currently, the pre-sales level is 36% (13 of 36 documented reservations). The developer applied for the license in June 2024.

The project will be financed through a €1,800,000 fixed-rate mortgage loan with a first mortgage guarantee. In this project, the loan has as an additional guarantee a pledge of the amounts owed by the AEAT to the developer for the refund of VAT (Value Added Tax) amounting to €525,000.

The developer, ARG Promociones, has contributed its own funds in the amount of 1,642,543 € (47.44%), which together with the 1,800,000 € requested from the wecity investors, reaches a total amount of 3,424,543 € necessary for the acquisition of the land and payment of the technical costs.

The repayment of the wecity investors’ loan will take place with the entry of the developer loan, once the building permit and the level of pre-sales required by the financing entity have been obtained.

Through wecity you can participate in a fixed rate loan operation with an annual interest rate of 11% for an estimated term of 12 months (6 months mandatory) with the possibility of an extension of 3 additional months. The total estimated return is 11% for 12 months or 13.75% if the final term is 15 months with the extension. The interest payment + the return of the invested capital will be made at maturity.

With a minimum investment of 500 €, you can participate in this opportunity with an excellent profitability and with maximum guarantees.

Investment keys

  • Purpose of the loan: To finance the acquisition costs of plot 19 of sector R-5, Las Mesas, Estepona (Málaga).
  • Guarantee: 1st degree mortgage on the asset.
  • Additional guarantee: Irrevocable power of sale.
  • Additional guarantee: VAT refund pledge in the amount of €525,000.
  • Term: 12 months (+ 3 months possible extension).
  • Annual interest rate: 11%.
  • Estimated total return: 11%.
  • Interest payment: at maturity.
  • Marketability: 36%
  • Current ECO valuation: €2,580,980 (current LTV: 69.74%).
  • Contributions:
    • Developer: €1,624,542 (47.44%).
    • Wecity investors: 1.800.000 €.
  • Minimum investment: 500 €.
  • Maximum investment: No limits.

ECO Appraisal and Mortgage Guarantee

The loan will be secured by a 1st degree mortgage on plot 19 of the SUP R-5 “Las Mesas” sector, Estepona (Málaga).

The current appraisal for mortgage guarantee purposes (Order ECO 805/2003) amounts to 2,580,980 €. This means a Loan to Value (LTV) over the current appraisal of 69.74%. The independent appraisal entity in charge of identifying the value is TECNITASA, whose corporate name is Técnicos en Tasación SA, and is registered as an Approved Appraisal Company by the Bank of Spain under number 4315.

The project

Location

Estepona, on the Costa del Sol, is a highlight of the Spanish real estate market, renowned for its privileged natural environment. The real estate offer is varied, with luxury villas, modern apartments and traditional houses, many with panoramic views of the Mediterranean Sea.

The town has a first-class infrastructure, including prestigious educational centers such as the San José International School and high quality medical services such as the Cenyt Hospital.

Estepona is also a paradise for sports enthusiasts, with numerous renowned golf courses, tennis and water sports facilities. The combination of its sunny climate, quality of life and excellent connectivity, close to Marbella and Malaga Airport, makes Estepona an ideal destination for both residential and investment property, ensuring continued demand in its real estate market.

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 entity external 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

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 receive any return on your investment. It is not a savings product and it is recommended that you do not invest more than 10% of your net assets in equity financing projects. You may not be able to dispose of the investment instruments at any time. Even if you are able to sell them, you may incur 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 withdraw, at any time, 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 after four calendar days from that date. To exercise their revocation rights, Investors may send an email to the following address: reclamaciones@wecity.com, filling in the “subject” field of such email as follows: “REVOCATION – Name of the Opportunity – Name and surname of the Investor”. In the event that you have made a monetary contribution linked to the financing offer, said amount will be returned as soon as possible to the wallet that, as an investor/user of the “WECITY” Platform, you have open with the “LEMONWAY” Payment Institution.

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 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 default

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 lower or delayed yield

The risk that the return is lower than expected or that the project defaults on the payment of principal or interest.

Investment illiquidity risk

The risk that investors will 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.

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