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.

Proyectos Alba – Salina 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 financing PHASE II of the “Alicante-La Herrada” project.

Once the developer has made the pre-agreed partial cancellations in PHASE I for an amount of €700,000 (4 of 14 homes), it activates this phase to continue covering the costs associated with the work. In relation to the 10 homes that continue to form part of the project, it should be noted that the level of pre-sales is 50% (5 of 10 documented reservations) and the level of certified work progress is 35.91%. The developer has contributed equity of €479,934 to the project.

The project will be financed through a €600,000 fixed-rate mortgage loan secured by a first mortgage.

Finally, it is worth mentioning that the site has a registered surface area of 3,302 m2. The entire development consists of a total of 14 single-family homes with private garden and swimming pool.

The exit of the investors from wecity occurs with the sale and delivery of the houses, once the First Occupancy License is obtained.

The payment of interest + the return of the invested capital will be made at maturity.

With a minimum investment of 500 € and no investment limit, you can participate in this opportunity with an excellent profitability and with the maximum guarantees.

ECO Tasation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €1,733,380. This means a Loan to Value (LTV) over the current appraisal of 80.70%.

The appraisal on the assumption of a finished building amounts to € 2,872,883. This represents a Loan to Value (LTV) on HET appraisal of 48.73%.

The Loan to Value (LTV) on first disposal is 65.21%.

The project

The project involves the acquisition of the plot and the completion of the construction of 14 single-family homes, with private garden and swimming pool.

Imágenes de vivienda similar de fases anteriores

Location

The project is located in the town of Los Montesinos (Alicante). Located in the triangle formed by the cities of Alicante, Murcia and Cartagena, access to these cities is fast and through roads in a perfect state of preservation. In addition, the town of Torrevieja, one of the coastal cities with more tourist tradition of the Valencian community is only 10 km away. The municipality of Los Montesinos, is surrounded by farmland, and by the great natural beauty that gives the views of the Salinas de Torrevieja.

The mortgage guarantee

The loan will have as 1st degree mortgage guarantee the plot of land and the building, located at Calle La Herrada, Parcela 12.1, Los Montesinos (Alicante).

The independent appraisal company in charge of identifying the value is VALMESA , whose corporate name is Valoraciones Mediterráneo SA, and is registered as an Approved Appraisal Company by the Bank of Spain under number 4,350.

According to the appraisal report prepared by GESVALT, the current appraisal amounts to €1,733,380.

The loan to be made to the developer is 2,100,000 €, after reducing the partial cancellations made (700,000 €), the outstanding debt is 1,400,000 €, which means a Loan to Value over the current appraisal of 80.70%.

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 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.