Description
This opportunity will be pre-financed under the Earlyfunding system. Once this period is over, all investments will be prorated proportionally among all investors. See here the conditions
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.
Zamu Actividades Económicas, S.L.U. requests financing from wecity for this investment opportunity.
Investor, before making your investment please read the basic information for the investor client. Past performance does not guarantee future performance.
The investment
The investment opportunity consists of a 1st degree mortgage loan to finance the purchase of plot AR S7 “AR Alcaparra III 1”, located in Calle Capellanía, Mijas (Málaga). As an additional guarantee, 191,000 € of the VAT refund to the company corresponding to the acquisition is pledged in this project.
The plot has a total buildable area of 1,543 m2 and has a building permit applied for in November 2022, for the construction of 7 independent luxury villas with large gardens and swimming pool. Each villa will have more than 300 m2 built on plots of more than 470 m2. The plot is mortgaged.
The developer provides equity of €660,000 (45.2%) of the total €1,460,000 required for the purchase.
The developer applies to wecity for a loan of €800,000 at a fixed rate for the purchase of the land. This loan has a 1st degree mortgage guarantee.
Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 11% for an estimated term of 12 months (6 months mandatory) with the possibility of extending for an additional 6 months. The total estimated return is 11% for 12 months or 16.5% if the final term is with the 6 month extension. The interest payment + return of the invested capital will be made at maturity.
With a minimum investment of €500, you can participate in this opportunity with an excellent return and maximum guarantees.
“If I invest €100,000 I will have an estimated total return of €11,000”
ECO Valuation
The current valuation for mortgage guarantee purposes (ECO Order 805/2003) amounts to 1,323,844.52 €.
The loan to be made to the company is €800,000, which means a Loan to Value (LTV) on the current valuation of 60.43%.
The independent appraisal company in charge of identifying the value is TASA, whose corporate name is Tasaciones Andaluzas SA, and is registered as an approved appraisal company by the Bank of Spain under number 4,358.
The project
7 luxury villas with large gardens and swimming pool in Mijas, Malaga. The houses of more than 300 m2 are built on a plot of about 500 m2.
Ground Floor (You can see the rest of the floors in the Documents section)
Location
Urbanisation La Capellania. Mijas, Malaga.
Located in the heart of the Western Costa del Sol, Mijas perfectly combines its status as a mountain village with an important tourist development in its coastal area.
Its privileged geographical location between the sea and the mountains makes it one of the most attractive tourist destinations in the province.
The mortgage guarantee
The loan will be secured by a 1st degree mortgage on plot AR S7 “AR Alcaparra III 1”, located in Calle Capellanía, Mijas (Málaga). The loan to be granted to the developer is 800,000 €, which means a Loan to Value (LTV) over the current valuation of 60.43%.
Furthermore, in this project, the loan is additionally secured by a pledge of the amounts owed by the AEAT to the developer for the refund of VAT (Value Added Tax) amounting to €191,000.
Guarantee Agent
The constitution, preservation, management, administration and, where 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 appointed Collateral Agent is BONDHOLDERS.
Bondholders is a professional company specialising primarily in the provision of independent commission agent and escrow services across a number of asset classes and under a number of international jurisdictions.
In recent years Bondholders has been mandated as agent and arranger in over 400 transactions representing a total of nearly 200 billion euros in debt.
Its main clients include financial institutions, institutional clients, asset managers and sovereign government agencies.
Currently one of Europe’s leading providers of independent fiduciary services.
Monitoring
The promoter will have to justify the use of the funds in each one of the applications. The use of the funds by the promoter will be monitored by a company external to wecity.
Keys
- Type: loan.
- Guarantee: 1st degree mortgage.
- Additional guarantee: pledge of €191,000 corresponding to the VAT refund.
- Term: 12 months (+6 months possible extension).
- Interest rate: 11% per annum.
- Estimated total return: 11%.
- Interest payment: at maturity.
- ECO appraisal: €1,323,844.52 (LTV: 60.43%).
- Contributions:
- Zamu Group: €660,000 of equity (45.2%).
- Wecity investors: €800,000.
- Minimum investment: €500.
- Maximum investment: No limits.
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.
