Description

wecity complies with the provisions of Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European providers of participative financing services for companies and Title V of Law 5/2015 on the promotion of business financing as amended by Law 18/2022 of 28 September on the creation and growth of companies. It is authorized by the CNMV as a Participatory Financing Service Provider, registered under number 9, with a favorable proposal from the Bank of Spain.

Investor, before making your investment, please read the basic information for the investor client, as well as the pre-contractual cooling-off period for inexperienced investors .

Skin in the game: “In compliance with Article 8.2 of Regulation (EU) 2020/1503 of the European Parliament and of the Council of October 7, 2020 on European providers of equity financing, it is hereby informed that in this opportunity partners, managers and employees of wecity may invest. 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 ARG Promociones, through its subsidiary Privilege Puerto Banus SL , is seeking financing through Wecity for the acquisition of three plots of land at 3-5 Edgar Neville Street, Puerto Banús (Marbella) . Furthermore, it should be noted that the developer has already applied for financing through the platform. Several projects: Málaga Estepona and Marbella Aldea Blanca> Both projects have been returned 100% and within the planned timeframe.

The project involves developing a building with 34 luxury 3- and 4-bedroom homes, each with a garage, as well as spacious green areas featuring swimming pools, a hot tub area, coworking spaces, an outdoor gym, and relaxation areas. The development will also operate under the concept of branded residence, offering homeowners a full range of services and personalized attention 24 hours a day.

Currently, the lot is classified as developable land. The developer has already begun the process with the City Council to reclassify it as consolidated urban land, submitting a Proposal for Delimiting the Area to expedite the process. Once this has been approved, the land readjustment, development, and building permit projects can be processed simultaneously. The resulting lot will have a total area of 8,549.78^m² and a buildable area of 7,281 m². From a commercial standpoint, the developer will put the property up for sale as soon as the building permit application process begins.

The developer will cover the project’s technical costs and, in addition , contribute €6,804,209 of its own funds ; it is applying for a fixed-rate mortgage loan at 12% in the amount of €7,000,000, to purchase the lots, which will be secured by a mortgage of 1^first degree^1stdegree on the asset and will have a term of 12 months (+6 months of possible extension).

The financing structure will be as follows: investors through wecity will contribute a maximum of 5,000,000 €

This maximum contribution will be divided into two installments. A guaranteed initial drawdown of €3,000,000 (Tranche A) and an optional second drawdown of €2,000,000 (Tranche B). In addition, investors independent of the platform will contribute €2,000,000 on an equal footing with wecity investors.

The loan is expected to be repaid to wecity investors once another financier comes on board and/or the homes are sold.

AInvest

In this opportunity, AInvest is applied.

The project

Location and surroundings

Located at 3-5 Edgar Neville Street, this area of Marbella stands out for its excellent location, very close to Puerto Banús and perfectly connected to downtown Marbella and the A-7. It is a well-established neighborhood offering a wide range of shops, restaurants, supermarkets, schools, and services, making it one of the most sought-after residential areas on the Costa del Sol.

In addition, some of the city’s main attractions are located nearby, such as Puerto Banús, the Marbella Boardwalk, Nueva Andalucía Beach, the Real Club de Golf Las Brisas, and the Centro Plaza, a leading shopping and entertainment destination in the area. This location combines quality of life, excellent transportation links, and high potential for property appreciation.

Mortgage collateral

The loan will be secured by a^{first-priority} mortgage on the property, located at 3-5 Edgar Neville Street, Marbella.

According to the appraisal report prepared by Savills, the current appraised value is €11,028,391.47. The loan to be granted to the developer in this first tranche is €3,000,000, representing a Loan-to-Value (LTV) ratio of 63.47%.

Collateral agent

The constitution, conservation, management, administration and, if applicable, enforcement of the pledge on behalf of wecity’s investors shall be carried out by an entity external to wecity.

In this case, the designated Collateral Agent will be the one indicated in the loan agreement.

Rating

wecity, as a provider of equity financing services and in compliance with Delegated Regulation (EU) 2024/358 supplementing Regulation (EU) 2020/1503 of the European Parliament and of the Council, provides a description of the credit rating method
of the projects used to calculate the ratings. If the calculation is based on accounts that have not been audited, this shall be clearly stated in the description of the method.

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 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.