Madrid La Fortuna

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Madrid-La Fortuna

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 works and technical costs.
  • Type: Fixed-rate loan.
  • Collateral: 1st degree mortgage collateral.
  • Term: 15 months (+6 months possible extension).
  • Required compliance: 6 months.
  • Interest rate: 11% per annum.
  • Interest payment: at maturity.
  • Current appraisal (ECO): 947,745 € | Current LTV: 58.03%.
  • ECO valuation (HET): 3.509.881€ | LTV HET: 59,83%.
  • First drawdown: 255.058,76 € | LTV 1ª drawdown: 26,91%
  • Rating: AA
  • Contributions:
    • Promoter: 821,538€ (39,12%)
    • Wecity loan Phase I: 550,000 €.
  • Minimum investment: 500 €.
  • Maximum investment: 2.000 € during the first hour.

The developer Auna Arquitectos, through the company VIVE LEGANÉS SL, is requesting financing from wecity to finance the technical and construction costs of a development of 6 semi-detached single-family houses located in Oporto Street, La Fortuna, Leganés ( Madrid).

The site has an area of 1,170m2 on which the 1,138m2 project will be developed. Each house has 180m2 built with 3 bedrooms distributed in 3 floors, in addition to two parking spaces in the outside area. The project already has a building permit granted for the development of the 6 dwellings and the works have started in January 2025. At the commercial level, 2 of 6 homes have been sold (33%) with down payments of €80,000 per home. Sales prices range from €500,000 to €600,000.

The project will be financed through a fixed-rate mortgage loan of €2,100,000, which will be secured by a first mortgage guarantee. For this opportunity , a first phase will be activated for an amount of €550,000, which may reach up to a maximum of three phases.

The promoter has contributed its own funds in the amount of €821,538, which have been allocated to the acquisition of the asset and payment of technical costs.

The repayment of the loan to wecity’s investors will take place with the sale and delivery of the homes to the buyers.

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 the possibility of extending for an additional 6 months at .

The payment of interest + the return of the invested capital will be made at maturity.

The project

Location and surroundings

The neighborhood of Leganés-La Fortuna, located south of Madrid, is a quiet residential area that combines competitive real estate prices with excellent connectivity. With access to Metro Line 11 and proximity to main roads such as the M-40 and the A-5, it is ideal for those seeking proximity to the capital without assuming the high costs of the center. Its real estate offer ranges from traditional apartments to new developments, adapting to different buyer profiles, from families to investors.

As for its surroundings, La Fortuna is close to green spaces such as the Polvoranca Park, perfect for outdoor activities, and has a wide range of services: schools, health centers and local stores. It is also just a few minutes from the Parquesur shopping center, one of the largest in the Community of Madrid, and has easy access to leisure and entertainment areas, which increases its attractiveness for living and investing.

Collateral and appraisal

The loan will be secured by a1st degree mortgage on the asset located at Calle Oporto, 140, Leganés, Madrid.

According to the appraisal report prepared by SOCIEDAD DE TASACIÓN, the current appraisal amounts to €947,745. The loan to be made to the developer is €550,000, which means a Loan to Value (LTV) over the current appraisal of 58.03%.

The HET value of the asset is €3,509,881, and the total of the 3 phases of the loan amounts to €2,100,000, which implies a LTV HET of 59.83%.

Finally, the first drawdown of the loan is €255,058, which represents a 1st drawdown LTV of 26.91%.

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.

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