Málaga-Ciudad Universitaria II

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.

Premier Tilos SL, requests financing from wecity for this investment opportunity. Investor, before making your investment please read the basic information for the investor client.

Skin in the game: “In compliance with Article 8.2 of Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 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 under the same conditions as those of other investors without receiving preferential treatment or privileged access to information.”

The investment

The developer is requesting a fixed rate loan with a 1st degree mortgage guarantee in the amount of €8,500,000 in different phases. The financing structure will be as follows:

PSFP investors: maximum contribution of €5,000,000.

External investors: minimum contribution of €3,500,000.

Wecity investors and external investors will hold a mortgage guarantee on an equal footing.

In accordance with the provisions of Regulation (EU) 2020/1503 of the European Parliament and of the Council on European providers of equity finance services for enterprises, the maximum amount of funding raised by investors from a PFSP must be set at €5,000,000.

The promoter activates a first phase of financing in the amount of €5,000,000. Of which the wecity investors will provide an initial tranche (Tranche B) of €2,000,000.

Of the €5,000,000, a first tranche (Tranche A) will be opened to wecity investors for a volume of €3,000,000.

The purpose of the financing is:

Cancellation of mortgage debt in the amount of €2,500,000 used in the acquisition of 84.58% of the land. The total amount of the

Acquisition of the remaining 15.42% of the plot in the amount of €1,588,089.

The remaining funds will be used to cover urbanization costs.

The exit of the wecity investors occurs with the entry of the bank developer loan, once the developer has obtained the building permit and the sales required by the bank. In this project, the developer will be able to start the building works once the basic urbanization works are executed, since the Partial Plan allows simultaneity.

Plot R-1 is located in the SUNC-RT-1 “Cortijo Merino” sector, a new development in Malaga, next to the well-known Zeta District. It has an area of 7,722.05 m2 and a buildable area of 16,988 m2 where more than 165 free dwellings with garages, storage room, swimming pool and common areas are planned. The plot is an unconsolidated urban land that has the Final Approval of the Partial Plan, Reparcelling Project and Urbanization Project, so the urbanization works can start immediately.

Marketing will begin with the start of the urbanization works. The estimated sales volume according to the ECO appraisal is 56,821,387 €.

The developer provides its own funds in this phase I in the amount of €8,000,000 (48.48%) which, together with the €8,500,000 requested from wecity investors, add up to a total of €16,500,000 necessary for the acquisition of the asset and the execution of the urbanization works.

Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 12% for an estimated term of 18 months (6 months mandatory) with a possibility of extension for an additional 6 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 return is 18% for 18 months or 24% if the final term is with the 6 month extension.

The promoter will make an annual payment of ordinary interest + another payment of ordinary interest together with the amortization of the principal at the maturity of the project.

ECO Tasation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €11,611,775. This means a Loan to Value (LTV) on current appraisal of 43.05%.

The Loan to Value (LTV) on first drawdown is 38.46%.

The independent appraiser in charge of identifying the value is SAVILLS, whose corporate name is Savills Tasaciones y Valoraciones SAU, and which is registered as an approved appraisal company by the Bank of Spain under number 4632.

The project

The SUNC RT-1 “Cortijo Merino” sector is one of the main urban developments in the city of Malaga. Located next to Distrito Zeta, both areas form the main axis of growth of the city.

It is an ambitious project that will house more than 1,250 public and private housing units. The developer developed the project together with Neinor Homes, majority owner of the remaining free plots in the sector, and the Malaga City Council.

The sector is located in a strategic area in the city’s main expansion zone, next to important developments such as the Teatinos university campus, the PTA (Parque Tecnológico de Andalucía), the EXPO 32 grounds, the airport and the Trade Fair and Congress Center.

Location

The SUNC RT-1 “Cortijo Merino” sector is one of the main urban developments in the city of Malaga. Located next to Distrito Zeta, both areas form the main axis of growth of the city.

It is an ambitious project that will house more than 1,250 public and private housing units. The developer developed the project together with Neinor Homes, majority owner of the remaining free plots in the sector, and the Malaga City Council.

The sector is located in a strategic area in the city’s main expansion zone, next to important developments such as the Teatinos university campus, the PTA (Parque Tecnológico de Andalucía), the EXPO 32 grounds, the airport and the Trade Fair and Congress Center.

The mortgage guarantee

The loan will be secured by a 1st degree mortgage on the assets and the construction, on plot R-1 of the SUNC-RT-1 sector “Cortijo Merino”, Malaga.

Wecity’s investors and external investors will have an equal mortgage guarantee.

According to the appraisal report carried out by Krata, the current appraisal amounts to €11,611,775. The loan to be made to the developer is €5,000,000, which means a Loan to Value (LTV) on the current appraisal of 43.06% and a Loan to Value of 1st disposal of 38.46%.

Collateral Agent

The constitution, preservation, management, administration and, if applicable, execution, of the real estate mortgage rights on behalf of wecity investors will be in charge of 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 services and independent agent 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.