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.

Apolinario 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 investment opportunity consists of a 1st degree mortgage loan to finance the cancellation of a mortgage debt with a debt fund in the amount of 1,689,025 € and the construction costs for the completion of the rehabilitation of a luxury villa located in the Urbanization Dominion Villas, Plot 1, Nueva Andalucía, Marbella (Málaga). The exit of the investors from wecity takes place with the delivery of the property, once the First Occupancy License is obtained. Currently, the degree of construction progress is 80.27%.

The house has a built area of 487 m² built on a plot of more than 1,220 m². The project consists of the rehabilitation of the house into an exclusive luxury villa with a unique design. The scope of the development is comprehensive, highlighting the remodeling of the extensive gardens and swimming pool.

The developer provides its own funds in the amount of 1,121,126 € (32.77%) which, together with the 2,300,000 € requested from wecity investors, add up to a total of 3,421,126 € of funds necessary for the completion of the project.

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 extending 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.

ECO Valuation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €3,099,019. This represents a Loan to Value (LTV) over the current appraisal of 74.22%.

The appraisal on the assumption of a finished building amounts to €4,257,676. This represents a Loan to Value (LTV) on HET appraisal of 54.02%.

The Loan to Value (LTV) on first disposal is 67.76%.

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

The project consists of the rehabilitation of a luxury villa located in the urbanization Dominion Villas, plot 1, Nueva Andalucía, Marbella.

Plot plan (you can see the rest of the plans in the Documents section)

Location

Located in the heart of Marbella, Nueva Andalucía 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.

The mortgage guarantee

The loan will be secured by a 1st degree mortgage on the asset and the building, located in the urbanization Dominion Villas, plot 1, Nueva Andalucía, Marbella.

According to the appraisal report made by Valum, the current appraisal amounts to 3,099,019 €. The loan to be made to the developer is 2,300,000 €, which means a Loan to Value (LTV) on the current appraisal of 74.22% and a Loan to Value of 1st disposal of 67.73%.

The HET appraisal (Assumed Completed Building) amounts to €4,257,676, which represents a Loan to Value HET of 54.02%.

Collateral Agent

The constitution, preservation, management, administration and, if applicable, enforcement of the real estate mortgage rights on behalf of the investors will be carried out by 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 and escrow 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 depositions requested. The use of the funds by the promoter will be monitored by a company external to wecity.

Compliance 🇪🇺

Compliance 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:

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.