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.
A.R.G Reformas Granadinas 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 opportunity consists of financing the acquisition costs of a luxury villa for its rehabilitation and subsequent sale. The asset is located in Avenida Manolete, 528, Nueva Andalucía, Marbella. The property has a buildable area of 252m2 and a constructed area of 348m2 on a plot of 840m2 with large gardens and swimming pool. The rehabilitation costs will be assumed entirely by the developer of the project. The commercialization will begin when the works are already well advanced.
The project will be financed through a fixed-rate loan with a 1st degree mortgage guarantee for an amount of €1,200,000, which will be used for the purchase and sale of the asset.
The promoter provides its own funds for an amount of €700,000 (37%) which, together with the €1,200,000 requested from wecity’s investors, make a total of €1,900,000 necessary for the acquisition of the asset and payment of technical expenses.
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 an extension of 3 additional months.
The exit of the investors occurs with the sale and delivery of the property to the buyer.
The payment of interest + the return of the invested capital will be madeat maturity.
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 11% for 12 months or 13.75% if the final term is with the 3-month extension.
Keys Investment
- Purpose of the loan: Purchase of a property located at Avenida Manolete, 528, Nueva Andalucia, Marbella.
- Guarantee:1st degree mortgage.
- Term: 12 months (+3 months optional extension).
- Interest rate: 11% per annum.
- Estimated total yield: 11%.
- Interest payment: at maturity
- ECO appraisal: €2,183,796 (current LTV: 54.95%).
- Contributions:
- Wecity loan: €1,200,000.
- Developer’s equity: €700,000 (37%).
- Minimum investment: €500.
- Maximum investment: No investment limits
ECO Valuation
The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €2,183,796. This represents a Loan to Value (LTV) over the current appraisal of 54.95%.
The independent appraiser in charge of identifying the value is VALUM, whose corporate name is Instituto de Valoraciones SA, and which is registered as an Approved Appraisal Company by the Bank of Spain under number 4498.
The Project
Location
Located in the heart of Marbella, Aldea Blanca offers an unparalleled connection to the attractions of the Costa del Sol, as well as a harmonious environment surrounded by lush Mediterranean landscapes. Meticulously designed gardens, landscaped pathways and architecture integrated with the surroundings create an oasis of serenity that invites residents to enjoy the tranquility and beauty of their surroundings.
It is located just a few minutes drive from Puerto Banus, the prestigious and exclusive marina. This proximity adds an exclusive touch to the lifestyle that Nueva Andalucía offers, allowing residents to immerse themselves in the sophistication of this iconic Marbella destination.
Mortgage Guarantee
The loan will be secured by a1st degree mortgage on the asset and the building, located at Avenida Manolete, 528, Nueva Andalucía, Marbella.
According to the appraisal report made by Valum, the current appraisal amounts to €2,183,796. The loan to be made to the developer is €1,200,000, which means a Loan to Value (LTV) over the current appraisal of 54.95%.
Collateral agent
The constitution, preservation, management, administration and, if applicable, enforcement of the real estate mortgage rights on behalf of wecity investors will be carried out by an external entity to wecity.
The Collateral Agent chosen for this project is Ceiba Global Alternative Investments SL, a company dedicated to the provision of fiduciary services by contract or mandate”.
Ceiba Global is a company owned by Ceiba Legal SL, a law firm specialized in alternative financing that provides services to several investment vehicles.
In 2023, Ceiba Legal provided legal advisory services amounting to €150,000,000, formalizing and structuring more than €60,000,000 in alternative financing transactions.
At present, it is one of the most recognized firms in the Spanish market in the structuring of secured debt transactions.
Additionally, Ceiba provides legal advice to wecity throughout the life of the loan, from structuring to foreclosure.
Monitoring
The promoter must justify the use of the funds in each of the provisions requested. 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.
