wecity is in compliance with law 5/2015 and is authorized by the National Securities Market Commission (CNMV) as a Participatory Financing Platform, listed with registration number 30, with a favourable nomination from the Bank of Spain.
Villa Lipto SL requests financing from wecity for this investment opportunity, which consists on the construction of a luxury Villa located at Calle las Adelfas 70 in San Pedro de Alcántara, Marbella (Málaga).
Skin in the Game: wecity partners invest in this opportunity.
Investor, before making your investment please read the basic information for the client. Past returns do not guarantee future returns.
Villa Lipto SL offers you the opportunity of a Fixed Rate Loan with a 1st Degree Mortgage Guarantee.
The project consists on financing the construction of a luxury Villa in Marbella (Malaga). The plot has a total area of 597.56 m2.
The villa will have a built area of 428.46 m2 where 211.55 m2 correspond to the two floors above ground and 216.91 m2 to one floor below ground level with 3 parking spaces.
The developer provides the land ownership and the building licence for the execution of the project. The construction of the Villa is expected to start in July 2022.
The financing target is €600,000 corresponding to Phase I of the total financing, which may rise to a maximum of €1,100,000 in different phases. Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 9.00% for an estimated term of 18 months. The total estimated profit after tax is 13.50 %. Interest payments will be made at maturity, i.e. in month 18.
In addition, the availability of funds will be monitored by an external company, based on the percentage progress of the construction works according to certifications.
With a minimum investment of 500 € and no investment limit, you can participate in this opportunity with excellent profitability and maximum guarantees.
“If I invest €100,000 I will have an estimated total profit of €13,500”
Valuation and Rating
The appraisal value for the Finished Building Hypothesis (FBH) in Phase I amounts to 1,720,529.62 €, which means a Loan To Value (LTV) on the Finished Building Hypothesis of 34.87%.
The initial valuation for mortgage guarantee purposes in Phase I (Order ECO 805/2003) amounts to 807,710.83 €. This means a Loan to Value (LTV) over the current valuation of 74.28%.
The Loan To Value (LTV) with monitoring on the first use of funds in Phase I is 59.77%.
An external rating has been requested from the consultancy firm JLL, which has assigned an AA rating to the project.
The project involves the construction of a luxury villa for residential purposes with 428.46 m2, where 211.55 m2 correspond to the two floors above ground and 216.91 m2 to one floor below ground level with 3 parking spaces.
Surrounding area and location
The project is located in calle las Adelfas, 70, San Pedro de Alcántara, a town in the municipality of Marbella (Málaga).
This residential area in the very heart of Costa del Sol, has a wide selection of stores, services and leisure areas nearby, as well as an easy access from the Mediterranean highway.
A few meters away from the Guadalmina residential complex and its golf club, it is consolidated as one of the most elegant and pleasant residential areas in Marbella, and only 5 km away from the Puerto Banus Marina.
The Mortgage Guarantee
The loan will be secured by a 1st degree mortgage on the plot of land and the construction object of the project located at Calle las Adelfas 70 in San Pedro de Alcántara, Marbella (Málaga).
The independent appraisal company in charge of determining the value of the plot of land is ATV VALOR.
According to the appraisal report carried out by ATV VALOR on 15 February 2022, the appraisal value of the mortgaged plot amounts to the sum of 807,710.83 €.
The loan to be provided to the developer of Phase I of the total financing is €600,000 (Phase I), and therefore represents a 74.28% Loan to Value on the current appraisal.
The estimated value, according to the comparison method, of the Finished Building Hypothesis (FBH) in Phase I, amounts to 1,720,529.62 €, which represents a Loan to Value of 34.87%.
The constitution, preservation, management, administration and, if applicable, enforcement of the real estate mortgage rights on behalf of the investors will be handled by an entity external to wecity.
In this case the appointed Guarantee Agent is BONDHOLDERS.
Bondholders is a professional company specialising primarily in the provision of independent commission agent and escrow services for a variety of asset types and under a number of international jurisdictions.
In recent years Bondholders has been appointed as agent and administrator in more than 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.
It is currently one of Europe’s leading independent fiduciary services providers.
The developer will have to provide evidence of the use of the funds in each of the releases requested.
The use of the funds by the developer will be monitored by an external company, and the funds will be released based on the progress percentage of the works according to certifications.
· Type of investment: Fixed interest loan.
· Interest payment: At maturity (month 18).
· Guarantee: 1st degree mortgage.
· Purpose of the loan:“Expenses intended for the acquisition and construction of a single-family home on the plot located in Urban Plot number 70, Register Property number 2874 of the Property Register No. 4 of Marbella, municipal district of Marbella, at the site of Linda Vista, in San Pedro de Alcántara. It has a surface area of five hundred and ninety-seven square metres and fifty-six square centimetres”.
· Contribution from the Developer and wecity Investors:
· Villa Lipto SL: 807,710.83 € (on ECO Current valuation)
· wecity Investors Phase I: 600,000 €
· Type of property: Luxury Residential
· Interest rate: 9% per year
· Estimated total yield: 13.50%
· LTV FBH (Phase I): 34.87%
· LTV Current Valuation (Phase I): 74.28%
· LTV on first monitored use of funds (Phase I): 59.77%
· Loan term: 18 months
· Minimum investment: 500 €