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, Gruppo Del Gaudio, through the company Turati 719 Srl, is seeking funding via wecity for the refurbishment of a building located at Via Filippo Turati, 7–19 (Pisa, Italy), where 13 flats with parking spaces will be developed.

The building has a gross floor area of 1,200 m². From a planning perspective, the planning permission has been processed via a declaration of compliance. From a commercial perspective, marketing will commence once the developer has started construction and the project has reached a significant stage of completion.

The total loan amount is €2,600,000, to be disbursed in three phases, with an annual interest rate of 11% and a standard term of 18 months plus a possible 6-month extension. In this first phase, we will finance Phase I of the loan, amounting to €900,000, which will be allocated to the first phase of construction. The transaction will be secured by a first-rank mortgage¹ on the property.

The developer has contributed €1,220,000 of its own funds towards the acquisition of the property, representing 31.94% of the total funds required for the project’s development.

The exit for wecity investors is planned to be via bank financing.

AInvest

AInvest does not apply on this occasion.

The project

Location and surroundings

The area around Via Turati 7–19, Pisa, offers a well-connected location that is highly attractive to those looking for a home or an investment property. Its proximity to the city centre, the railway station and the airport ensures constant demand from residents, students and professionals alike, bringing stability to the local property market.

Key nearby attractions include Pisa Centrale station, the historic centre with the famous Leaning Tower of Pisa, the University of Pisa and a wide range of shops, restaurants and services. This combination offers convenience in everyday life and good potential for capital appreciation for any property in the area.

Mortgage collateral

The loan will be secured by a first-rank mortgage on the property, situated at Via Turati 7-19 (Pisa).

According to the valuation report carried out by RYZE, the current valuation stands at €1,760,000 and the valuation on the assumption of a completed building (HET) at €4,868,000. The loan to be granted to the developer in this first phase is €900,000, representing a Loan-to-Value (LTV) ratio of 53.41% based on the Completed Building Valuation (HET) and an LTV ratio of 51.14% for the first drawdown.

Collateral agent

The creation, maintenance, management, administration and, where applicable, enforcement of the security interest on behalf of wecity investors shall be the responsibility of an entity external to wecity.

In this case, the designated Security Agent shall be the one specified in the loan agreement.

Rating

wecity, as a provider of participatory financing services and in accordance with Delegated Regulation (EU) 2024/358 supplementing Regulation (EU) 2020/1503 of the European Parliament and of the Council, provides a description of the project credit rating method

used to calculate the ratings. If the calculation is based on unaudited accounts, this shall be clearly stated in the description of the method.

Monitoring

The developer must provide evidence of how the funds will be used for each of the disbursements requested. The developer’s use of the funds 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.