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.

Eurobell Inversiones SL 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 construction costs of the refurbishment of a building in Mallorca Street, 5, San Sebastián de los Reyes (Madrid). The exit of wecity’s investors will take place with the delivery of the homes and lofts to the buyers, once the First Occupancy License is obtained.

The building has a total built area of 1,333 m2, where 8 homes will be built, 6 of them duplexes with terraces, and 15 lofts, 17 parking spaces and a communal terrace with solarium. Currently, 52.17% of the development has been sold, 12 out of 23 units, corresponding to 4 homes and 8 lofts marketed.

The developer is providing its own funds in the amount of €870,000 (41.28%) which, together with the €487,165 (23.11%) provided by the buyers and the €750,000 requested from the wecity investors, add up to a total of €2,107,165. The remaining funds to complete the €2,751,880 required for the execution of the project will be provided by the buyers, with a 1st degree mortgage guarantee.

Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 10% for an estimated term of 6 months (6 months mandatory) with the possibility of an 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 total estimated profit 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.

Keys

ECO Tasation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €1,923,726. This represents a Loan to Value (LTV) over the current appraisal of 38.98%.

The appraisal on the assumption of a finished building amounts to €4,404,634. This represents a Loan to Value (LTV) on HET appraisal of 18.72%.

The Loan to Value (LTV) on first disposal is 10,23%.

The independent appraiser in charge of identifying the value is TINSA, whose corporate name is Tasaciones inmobiliarias SAU, and is registered as an approved appraisal company by the Bank of Spain under number 4313.

The project

The project consists of 8 homes, 6 of them duplexes with terrace and 15 lofts, 17 parking spaces and communal terrace with solarium.

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

Location

The project is located at Mallorca 5, San Sebastián de los Reyes (Madrid).

Very close to the town center of the town and large green areas such as the Parque de la Marina or the Dehesa Boyal. It also has a multitude of stores and services around it, as well as shopping and leisure centers (Style Outlets, Plaza Norte 2).

Quick access to Madrid from the A-1 and good communications through suburban train stations, Metro L-10 and urban and intercity buses.

The mortgage guarantee

The loan will be secured by a 1st degree mortgage on the building and the construction, located at Calle Mallorca, 5, San Sebastián de los Reyes (Madrid).

According to the appraisal report made by TINSA, the current appraisal amounts to €1,923,726. The loan to be made to the developer is 750,000 €, which implies a Loan to Value (LTV) on the current appraisal of 38.98% and a Loan to Value of 1st disposal of 10,23 %.

The HET appraisal (Hypothetical finished building) amounts to €4,004,634, which represents a Loan to Value HET of 18.72%.

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 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.