Description
This opportunity will be financed under the Earlyfunding system. At the end of this period, all investments will be prorated proportionally among all investors. See the conditions
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.
Iberatlantic Real Estate Assets, S.L requests financing from wecity for this investment opportunity.
Investor, before making your investment please read the basic information for the investor client.
The investment
The investment opportunity consists of a 1st degree mortgage loan, intended to finance the cancellation of a mortgage debt of € 1,351,576 with an investment fund, which exists on a plot of land for industrial use located at Estrada das Ligeiras nº 21 to 27, Cacem-Sintra, in the metropolitan area of Lisbon, in which a warehouse for logistic use will be developed. As well as covering the costs associated with the urbanization of the plot and the management of the project.
The sponsor, owner of the plot, signed last July a Promissory Purchase Agreement with one of the largest real estate investment funds worldwide for the sale of the asset for an amount of € 6,000,000. A transaction conditioned to the fulfillment of two milestones: on the one hand, the issuance of the Definitive Approval of the Plotting License by the Chamber of Sintra, a milestone that has already been initially approved, and on the other hand, the resolution and approval of the Agencia Portuguesa de Ambiente (APA). In reference to this point the developer has a 2016 environmental report in which no indications of contamination were found. The exit of the investors from wecity occurs with the Deed of Sale, once the conditions set out in the Promes de Compraventa Contract are met.
The plot has a surface area of 45,000 m2 , on which the development of a logistics warehouse of 22,360 m2 and a height of 13.6 meters is planned. In addition, the project includes 18 parking spaces for heavy vehicles and 98 for other types of vehicles.
The developer provides equity of €1,350,000 (36.90%) of the total €3,650,000 required for the development of the project.
The developer requests a €2,300,000 fixed-rate loan from wecity for the purchase of the land. This loan has a 1st degree mortgage guarantee.
Through wecity you can participate in a fixed rate loan operation with an annual interest rate of 12% 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 12% for 12 months (or 15% if the final term is with the 3 month 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 the maximum guarantees.
“If I invest €100,000 I will have an estimated total return of €12,000”.”
RICS valuation (2023)
The current RICS valuation amounts to €5,429,000.
The loan to be made to the company is €2,300,000, which represents a Loan to Value (LTV) over the current valuation of 42.36%.
The independent appraiser in charge of identifying the value is CBRE PORTUGAL, whose corporate name is Consultoria e Avaliaçao de Imóveis Lda. CBRE is one of the most prestigious real estate consultants with the greatest international presence in more than 100 countries.
The Project
Logistics warehouse with a buildable area of 22,370 m2 and 13.6 meters high.
Location
Cácem-Sintra (Lisbon). Estrada das Ligeiras nº21 to 27
The asset is located in the Agualva-Cacém industrial park, municipality of Sintra (Lisbon), specifically in Estrada das Ligeiras nº21-27.
Located in Lisbon’s industrial zone 5, it is only 750 meters from the A37, the main communication route between Sintra and Lisbon.
It also has quick and easy access to the A5, A9 and A16 highways, which also connects it to other municipalities in the eastern part of the Lisbon metropolitan area and the rest of the country.
The mortgage guarantee
The loan will be secured by a 1st degree mortgage on the building located at Estrada das Ligeiras nº21-27, Sintra (Lisbon). The loan to be made to the developer is for 2,300,000 €, which means a Loan to Value (LTV) on current appraisal of 42.36%.
Collateral Agent
The constitution, conservation, management, administration and, if applicable, execution of the real estate mortgage rights on behalf of the investors will be carried out by an external entity to wecity.
In this case, the Collateral Agent appointed is the Report Collateral Agent.
Monitoring
The developer will have to justify the use of the funds in each one of the depositions requested. The use of the funds by the promoter will be monitored by a company external to wecity.
Keys
- Purpose of the loan: Cancellation expenses of a mortgage on an industrial plot where a logistics warehouse will be developed in Estradas das Ligeiras, nº 21 to 27, Sintra. As well as the urbanization and management expenses associated with the project.
- Guarantee: 1st degree mortgage.
- Term: 12 months (+ 3 months possible extension).
- Interest rate: 12% per annum.
- Estimated total yield: 12%.
- Interest payment: at maturity.
- RICS Valuation: €5,429,000 (LTV: 42.36%).
- Contributions:
- Iberatlantic Real Estate Assets: €1,350,000 of equity (36.90%).
- wecity investors: €2,300,000.
- Minimum investment: €500.
- Maximum investment: No limits.
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.
