Marbella-El Herrojo

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.

Tortuga Projects Developments 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 requests from wecity a fixed rate loan with 1st degree mortgage guarantee for an amount of €1,500,000 corresponding to phase I of the total financing, which may amount to a maximum of €3,000,000 in two phases. The purpose of the financing is to defray the costs of the execution of the refurbishment of a luxury villa until the delivery of the property to the buyer, once the First Occupancy License is obtained. The project is additionally secured by an irrevocable power of sale.

The exit of the investors from wecity occurs with the sale and delivery of the property to the buyer.

The property is located in the Urbanization El Herrojo, Plot 91, Benahavís, one of the most exclusive urbanizations in Marbella with private access controlled by security. It has a built area of 720 m² on a plot of 1,198 m² with large gardens and spectacular sea views. The project includes 6 bedrooms with terrace and an apartment for service staff with separate entrance. In addition, it is designed with all kinds of details and luxuries, such as elevator, outdoor kitchen or infinity pool. Marketing will begin when the construction work is close to 100% complete.

The developer is providing its own funds in the amount of €2,000,000 (57%), together with the €1,500,000 requested from the investors of wecity phase I, for a total of €3,500,000 required to start construction. The promoter will be able to activate phase II until completing the funds necessary for the execution of the project.

Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 12% for an estimated term of 15 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 estimated total return is 15% for months or 21% if the final term is with the 21-month extension.

The promoter will make an annual payment of ordinary interest. In addition, there will be 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 €2,450,598. This represents a Loan to Value (LTV) over the current appraisal of 60.21%.

The appraisal on the assumption of a completed building amounts to €4,980,286. This represents a Loan to Value (LTV) on HET appraisal of 60.24%.

The Loan to Value (LTV) on first disposal is 40.66%.

The independent appraiser in charge of identifying the value is CBRE, whose corporate name is CBRE Valuation Advisory SA, and is registered as an Approved Appraisal Company by the Bank of Spain under number 4630.

The project

The project consists of the rehabilitation of a house to promote a 6-bedroom luxury villa on plot 91, urbanization El Herrojo, Benahavís (Marbella, Málaga).

Location

The project is located in the prestigious urbanization of El Herrojo, in the area of Marbella Benahavís, province of Málaga, one of the most exclusive areas of the Costa del Sol.

Its privileged mountaintop location guarantees unparalleled panoramic views of the Mediterranean Sea and the surrounding landscape. This elevated location offers residents an oasis of serenity and privacy, while enjoying the natural beauty that surrounds the area.
Just a few minutes’ drive from the main entrance is the vibrant center of Marbella, with its exclusive restaurants and luxury boutiques, as well as the iconic Golden Mile and the emblematic area of Puerto Banus. Residents of El Herrojo enjoy the convenience of having quick access to all the amenities and attractions that make Marbella Benahavís one of the most desirable destinations on the Costa del Sol.

The mortgage guarantee

The loan will be secured by a 1st degree mortgage on the assets and the building located on plot 91, urbanization El Herrojo, Benahavís (Marbella, Málaga).

According to the appraisal report carried out by CBRE, the current appraisal amounts to €4,980,286. The loan to be made to the developer is €1,500,000, which means a Loan to Value (LTV) on current appraisal of 60.21% and a Loan to Value of 1st disposal of 40.66%.

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 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 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.