Description

wecity complies with Law 5/2015, is authorized by the CNMV as a Participatory Financing Platform registered under number 30, with a favorable proposal from the Bank of Spain.

Grupo Re-aviva, through the vehicle company Shiva Desarrollo SL, requests financing from wecity for this investment opportunity.

Investor, before making your investment, please read the basic information for the investor client. Past returns do not guarantee future returns.

Project Summary

Investment consists of financing, through a first-grade fixed-rate mortgage loan, the acquisition and renovation of two commercial premises into 4 tourist apartments, along with 3 parking spaces. These premises are located in a building at 263 Arturo Soria Street, Madrid, and currently have a total constructed area of 163 m2.

The apartments will be loft-style and will have 3 parking spaces each, with independent access from within the property. The license is being processed through ECU (Collaborating Urban Entities).

The developer is requesting a loan from wecity in the amount of €600,000, with a first-grade fixed-rate mortgage guarantee.

Through wecity, you can participate in a fixed-rate loan operation with an annual interest rate of 10% and an estimated duration of 12 months (6 months of mandatory compliance) with a possibility of a 3-month extension. The total estimated return is 10% over 12 months or 12.50% if the final term includes the 3-month extension. The payment of interest + the return of the invested capital will be made at maturity.

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

With a minimum investment of €500 and no investment limit, you can participate in this opportunity with excellent profitability and maximum guarantees.

Valuation

The current appraisal value of the plot for mortgage guarantee purposes (according to Order ECO 805/2003) amounts to €512,216.

The Loan to Value (LTV) based on the current appraisal value is 117.14%.

The Loan to Value (LTV) based on the first disbursement is 57.88%

Project

Transform two commercial premises into 4 tourist apartments. These premises are located on the ground floor of a building at 263 Arturo Soria Street, Madrid, and currently have a total constructed area of 163 m².Transformar dos locales comerciales en 4 apartamentos para uso turístico.

Distribution plan for 4 apartments

Facade of the Arturo Soria 263 building

Photographs of other similar projects carried out by Re-aviva.

Photographs of other similar projects carried out by Re-aviva.

Location and Areas

Arturo Soria Street, Madrid.

Arturo Soria Street is the main thoroughfare in the Ciudad Lineal district and one of the most pleasant and sought-after residential areas to live in Madrid.

Areas such as Parque Conde Orgaz, Canillas, Pinar del Rey (in the Hortaleza district), the Colina neighborhood, Atalaya, and ending in Pinar de Chamartín (among many other neighborhoods) contribute to the unique charm of these areas. They offer a perfect combination of green spaces, excellent transportation connections, with the heart of the Salamanca district just 15 minutes away. These neighborhoods also feature gated communities with swimming pools and gardens, as well as a variety of chalets in different sizes and styles.

Collateral

The loan will have a first-grade mortgage guarantee on the two premises located in the semi-basement of the building at Arturo Soria Street 263.

The independent valuation company responsible for determining the value is TASVALOR, whose official name is GRUPO TASVALOR SA, and it is registered as an Approved Valuation Company by the Bank of Spain with number 4,631.

According to the appraisal report conducted by TASVALOR, the current appraisal value of the plot amounts to €512,216.

The loan to be provided to the cooperative is €600,000, which represents a Loan to Value ratio of 117.14% based on the current appraisal value.

Security Agent

The establishment, maintenance, management, administration, and, if necessary, execution of real estate mortgage rights on behalf of investors will be handled by an external entity to wecity.

In this case, the designated Guarantors Agent is BONDHOLDERS.

BONDHOLDERS is a specialized professional company primarily providing trustee and independent agent services for various asset classes under numerous international jurisdictions.

In recent years, BONDHOLDERS has been appointed as an agent and trustee in over 400 transactions representing a total of approximately €200 billion in debt.

Among its main clients are financial institutions, institutional clients, asset managers, and sovereign government agencies, among others.

Currently, BONDHOLDERS is one of the leading providers of independent fiduciary services in Europe.

 

Monitoring

The developer must provide justification for the use of funds in each disbursement they request. The utilization of funds by the developer will be monitored by an external company separate from wecity.

Bullet Points:

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.