Madrid-Live Colmenar

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Inversión en Colmenar Viejo, Madrid
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Madrid-Live Colmenar

Calle Josefina Castellvi Colmenar Viejo

LoanInvestment Modality MG1 First Grade mortgage guarantee ResidentialProperty type AAOpportunity Rating

Funded 100,00%

1.075.000€

Amount

1.075.000€

377 Investments

Investment Period 6 months

Total Estimated Return 5.00%

Annual interest rate 10,00%

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.

Live Colmenar Sociedad Cooperativa Madrileña 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 to finance the purchase of a plot of land located in Josefina Castellví street, in the “Cerca Tejera” sector, Colmenar Viejo (Madrid). The exit of wecity’s investors will take place with the entry of bank financing once the building permit is obtained.

The plot, with a total area of 2,334 m2 , has an approximate buildable area of 1,880 m2 where 10 semi-detached houses with garage and swimming pool will be built. 100% of the homes (10 of 10 units) have already been awarded to cooperative members, who have made contributions of between 50,000 euros and 65,000 euros.

The total funds required for the purchase of the plot is €1,751,000. The cooperative contributes with its own funds in the amount of 676,000 (38.60%) and requests a loan of 1,075,000 € at a fixed rate from wecity. This loan has a 1st degree mortgage guarantee. As an additional guarantee, 163,000 € of the VAT refund to the company corresponding to the acquisition is pledged in this project.

Through wecity you can participate in a fixed rate loan operation with an annual interest rate of 10% in an estimated term of 6 months (6 months of obligatory compliance) with a possibility of extension of 3 additional months.

With a minimum investment of 500 €, you can participate in this opportunity with an excellent profitability and with the maximum guarantees. The estimated total return is 5% for 6 months or 7.5% if the final term is with the 3-month extension.

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

Opportunity keys

  • Purpose of the loan: Acquisition costs of a plot of land for the development of 10 single-family homes on Calle Josefina Castellví, in the Cerca Tejera sector, Colmenar Viejo (Madrid).
  • Guarantee: 1st degree mortgage.
  • Term: 6 months (+ 3 months possible extension).
  • Interest rate: 10% per annum.
  • Estimated total yield: 5%.
  • Interest payment: at maturity
  • ECO appraisal: €1,502,120 (LTV: 71.56%)
  • Contributions:
    • Cooperative: €676,000 of equity (38.60%).
    • wecity investors: €1,075,000.
  • Minimum investment: €500.
  • Maximum investment: No limits.

ECO Valuation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €1,502,120.

The loan to be made to the company is 1,075,000 €, which means a Loan to Value (LTV) over the current appraisal of 71.56 %.

The independent appraiser in charge of identifying the value is ST Sociedad de Tasación, whose corporate name is ST Sociedad de Tasación SA, and which is registered as an approved appraisal company by the Bank of Spain under number 4301.

The project

The project consists of 10 single-family homes, 8 semi-detached and 2 detached, with garage and private swimming pool. The houses, of more than 188 m2 built, will be developed on plots of more than 300 m2.

Inversión en Colmenar Viejo, Madrid

Ground Floor (You can see the rest of the floor plans in the Documents section)

Inversión en Colmenar Viejo, Madrid
Inversión en Colmenar Viejo, Madrid
Inversión en Colmenar Viejo, Madrid

Location

Josefina Castellví Street, Sector SUP-7 “Cerca de la Tejera”. Colmenar Viejo, Madrid

Located in Colmenar Viejo, north of Madrid, it is an attractive residential enclave surrounded by nature and mountains. It borders La Pedriza, in the Sierra de Guadarrama, considered one of the largest nature reserves in the Community of Madrid.

Its infrastructure includes schools, sports and health centers, as well as excellent connectivity with Madrid through roads and public transportation.

The community stands out for its high purchasing power, which drives the demand for luxury properties. This combination of factors makes it an unbeatable option for the development of exclusive and high quality real estate projects.

Inversión en Colmenar Viejo, Madrid

The mortgage guarantee

The loan will be secured by a 1st degree mortgage on the building located at Calle Josefina Castellví, Colmenar Viejo. The loan to be granted to the developer is €1,075,000, which represents a Loan to Value (LTV) over the current appraisal of 71.56%.

Collateral agent

The constitution, preservation, management, administration and, if applicable, enforcement of the real estate mortgage rights on behalf of the investors will be carried out by an entity external to wecity.

In this case the designated Collateral Agent is BONDHOLDERS.

Bondholders, is a professional company specialized mainly in providing independent commission agent and escrow services over different asset classes and under numerous international jurisdictions.

In recent years Bondholders has been mandated as agent and arranger in more than 400 transactions representing a total of nearly 200 billion euros in debt.

Its main clients include, among others, financial institutions, institutional clients, asset managers, sovereign government agencies.

Currently one of the leaders in Europe in providing independent fiduciary services.

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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