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 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, it is hereby informed that in this opportunity partners, managers and employees of wecity may invest. 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 AM48 HOLDING, S.A. is requesting financing for a total of 3,200,000 euros for the acquisition of 2 plots, through an independent vehicle company, VARANDAUSENTE LDA, for the construction of 2 multi-family residential buildings, at Avenida António Galvão de Andrade, plots 3.1 and 3.2, in Santo António dos Cavaleiros, Loures, Lisbon Portugal.

The asset has a total area of 2,010 m², where a development of 76 multi-family dwellings with between 1 and 4 bedrooms, distributed over 7 floors, will be developed. In addition, the buildings will include common areas such as coworking rooms, lounges, a shopping mall and parking lots. The total gross construction area amounts to 10,692 m². The project has a building permit granted on April 7, 2025.

The developer is requesting financing in the amount of €3,200,000, of which wecity investors will contribute an initial tranche (Tranche A) of €1,600,000. Tranche B (€1,600,000) may be activated once Tranche A has been financed.

The project will be financed through a fixed-rate mortgage loan in the amount of €3,200,000, with a 1st degree mortgage guarantee on land other than the asset being financed in the Algarve area of Portugal.

To date, the developer has contributed equity of €1,003,825.59 for the initial payment of the acquisition of the asset, as well as to cover the costs of the technical projects and professional fees.

The repayment of the loan to the wecity investors is expected to occur with the sale of the development and the installment payments of the pre-sales, as established in the financing agreement.

The project

Location and surroundings

The project is located on Avenida António Galvão de Andrade, in the residential area of Santo António dos Cavaleiros, municipality of Loures(Lisbon).

With excellent connections to Lisbon via the A8, the IC22 and the Odivelas subway station, this location combines tranquility with quick access to the center of the capital. Its surroundings include essential services, green areas such as the Parque Urbano da Encosta, and points of interest such as the Museu Municipal de Loures and the Jardim de Santo António dos Cavaleiros.

A consolidated and well communicated area, ideal for both living and investment.

Collateral and appraisal

As a guarantee, and in order to secure the financing of the construction, the developer makes available another plot of land, the other two being free of charges or encumbrances for the bank, located in Sítio do Ancão or Garrão, in Ancão, Almancil, district of Faro, in the Algarve (Portugal). The plot has 104,066.^75m2.

According to the appraisal report prepared by tinsa, the current RICS appraisal amounts to €8,528,200. The loan to be made to the developer is €3,200,000, which implies a Loan to Value (LTV) on the current appraisal of 37.52% and a Loan to Value (LTV) on the Completed Building Assumption (HET) of 27%.

Strengths

• Location of the warranty:

The land is located in the area known as the “Golden Triangle”, which is the area of the Algarve where most of the properties with the highest prices are located.

It is composed of Quinta do Lago, Vale do Lobo and Vilamoura and is located 15 km west of Faro airport, 20 minutes from Faro International Airport.

Vilamoura is a resort complex with an area of 20 km² that includes a marina that houses large boats, Casino, luxury hotels, internationally recognized golf courses and several other infrastructures. Quinta do Lago is set on nearly 645 hectares of land with pine forests and lakes, surrounded by beautiful beaches, and offers a combination of exquisite services, an elite lifestyle and total privacy, in the heart of some of the most prestigious golf courses in Europe.

• Promoter:

More than 25 years of experience in real estate investment and development

With more than two decades of experience in identifying investment opportunities and analyzing their profitability in advance, AM48 has developed a unique ability to act quickly in the market and access the best opportunities before other players in the sector. This expertise ranges from urban planning to real estate development – residential, commercial and tourism – with strong relationships with local authorities and efficient land and site management. AM48 oversees every stage of the life cycle of its projects: from conceptualization and design, to construction, marketing and sales, coordinating external suppliers and optimizing product, margins and commercial strategy.

Under the vision of Alejandro Martins, the company stands out for implementing innovative solutions and for its constant search for proposals that go beyond the obvious.

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

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 project credit rating method 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 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.