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.

Residencial Plaza de Independencia 2 SLU, 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 financing an amount of €2,200,000 through a first mortgage loan. The loan will be used to defray the costs of acquisition and refurbishment of commercial premises for the implementation of a café and spa business. The exit of wecity’s investors will take place with the entry of the bank financing, once the rents are stabilized.

The premises are located in Salustiano Olózaga street, 14 izquierda, Madrid, next to Puerta de Alcalá. It has a gross leasable area of 204 sqm and a 9.5 meters frontage. The operator will be SIX HARMONIES, the spa & wellness brand of the Ramses Group. Given the success of this project, the developer needs to increase the business area to meet demand. In addition, it will increase the services offered with a cafeteria focused on personal care and an events room. This location is strategic for Grupo Ramses, which seeks to strengthen its presence in Puerta de Alcalá, where they have different hospitality businesses such as Ramses, Patio de Leones, Lady Bongo, The Kave, Flamenco de Leones or Casa Faraona.

Grupo Ramses, promoter of the project, has already provided funds for the acquisition of the asset in the amount of €445,000, which together with the €2,200,000 requested from wecity investors, make a total of €2,645,000 necessary for the execution of the project. In addition, the developer provides as 2nd degree mortgage guarantee; commercial premises in Salustiano Olózaga, 11, commercial premises Salustiano Olózaga, 14 center, and 18 parking spaces in Salustiano Olózaga, 12.

Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 12% for an estimated term of 9 months (6 months mandatory) with a possibility of extension for an additional 6 months. The total estimated return is 9% for 9 months or 15% if the final term is 6 months with the extension. The interest payment + the return of the invested capital will be made at maturity.

With a minimum investment of 500 €, you can participate in this opportunity with an excellent profitability and with the maximum guarantees.

ECO Tasation

The current appraisal for mortgage guarantee purposes (Order ECO 805/2003) of the commercial property located at Salustiano Olózaga Street, 14 left amounts to 2,090,298 euros. This means a Loan to Value (LTV) over the current appraisal of 105%. The independent appraisal company 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.

In this project the following assets are mortgaged in 2nd rank:

1) The current appraisal for mortgage guarantee purposes, (Order ECO 805/2003) of the commercial premises located at Salustiano Olózaga Street, 11, amounts to 2,051,337 € . The independent appraisal company in charge of identifying the value is SAVILLS, whose corporate name is Savills Valoraciones y Tasaciones SAU, and is registered as an Approved Appraisal Company by the Bank of Spain under number 4632.

2) The current appraisal for mortgage guarantee purposes, (Order ECO 805/2003) of the commercial premises located at calle Salustiano Olózaga, 14 centro amounts to 161,126 €. The independent appraisal company in charge of identifying the value is VALMESA, whose corporate name is Valoraciones Mediterráneo SA, and is registered as an Appraisal Company approved by the Bank of Spain under number 4350.

3) The current appraisal for mortgage guarantee purposes, (Order ECO 805/2003) of 18 parking spaces located at 12 Salustiano Olózaga Street amounts to 1,252,671 €. The independent appraisal company in charge of identifying the value is CBRE, whose corporate name is CBRE Valuation Advisory SA, and it is registered as an Approved Appraisal Company by the Bank of Spain under number 4630.

The total value of the ECO appraisals of the mortgaged assets amounts to €5,555,432. 1,703,706, the value is €3,851,726. This represents a Loan to Value (LTV) over current appraisal of 57.12%.

The project

The project consists of financing the acquisition and rehabilitation of commercial premises for the implementation of a cafeteria and spa business operated by the brand belonging to the Ramses Group, Six Harmonies, in Salustiano Olózaga Street, 14, Madrid.

Imágenes reales de Six Harmonies en la calle Salustiano Olózaga, 11

Location

The investment project is located on Salustiano Olózaga Street, in the heart of the Salamanca neighborhood, the nerve center of the city and one of the neighborhoods with the highest standard of living in Europe. Located less than 5 minutes walk from the National Library, Plaza Cibeles or El Retiro.

We are located in one of the most exclusive commercial areas of the city. The Salamanca district has the largest luxury shopping area in Madrid around the streets Serrano, Ortega y Gasset, Claudio Coello, Lagasca and Ayala.

The mortgage guarantee

The loan will be secured by a 1st degree mortgage on the assets and the building located at Salustiano Olózaga street, 14 izquierda, Madrid. According to the appraisal report prepared by CBRE, the current appraisal amounts to €2,090,298. The loan to be granted to the developer is for 2,200,000 €, which means a Loan to Value (LTV) over the current appraisal of 105%.

Additionally, this loan will have a 2nd rank mortgage guarantee on the assets and the construction, located in:

Commercial Premises in Salustiano Olózaga Street, 11. According to the appraisal report made by SAVILLS, the current appraisal amounts to 2,051,337 €. Currently, this asset has a mortgage charge in 1st degree of 1.089.425 €.

Commercial Premises in Salustiano Olózaga street, 14 downtown. According to the appraisal report made by VALMESA, the current appraisal amounts to 161,126 €. Currently, this asset has a 1st degree mortgage charge of 69,637 €.

18 parking spaces in Salustiano Olózaga street, 12. According to the appraisal report carried out by CBRE, the current appraisal amounts to € 1,252,671. Currently, this asset has a 1st degree mortgage burden of €650,305.

The total value of the ECO appraisals of the mortgaged assets amounts to €5,555,432. After deducting the charges of the 2nd rank mortgaged assets, 1,703,706 €, the value is 3,851,726 €. This represents a Loan to Value (LTV) over current appraisal of 57.12%.

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 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 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.