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.

Ankron FRYG5 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 the acquisition costs of a commercial property in Madrid, located at the intersection of Jaime el Conquistador, Embajadores and Cáceres streets. The premises, located on the first floor, has a constructed area of 2,590^m2. The developer has signed an agreement with the BM supermarket chain to operate the premises for 25 years with a mandatory 8-year term.

The project will be financed through a fixed-rate mortgage loan of €2,200,000 with a^first mortgage guarantee.

The developer (Ankron FRYG5 SL) has contributed its own funds in the amount of €1,961,700 (47%), which together with the €2,200,000 requested from wecity investors, make a total amount of €4,161,700 required for the acquisition of the asset.

The loan will be repaid with the sale of the commercial premises in profitability, once the adaptation works are completed and the asset begins to generate income through the signed operating contract.

Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 12% in an estimated term of 9 months (6 of obligatory compliance) and with the possibility of an additional extension of 3 months.

With a minimum investment of 500 €, you can participate in this opportunity with an excellent profitability and with the maximum guarantees. The estimated total profitability is 9% for 9 months (or 12% if the final term is 12 months including the extension).

The repayment of the loan and its interest will be at maturity.

ECO Valuation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €4.460.258,82 . This represents a Loan to Value (LTV) over the current appraisal of 49,32%.

The independent appraisal company in charge of identifying the value is GLOVAL VALUATION, whose corporate name is Gloval Valuation SAU, and is registered as an Approved Appraisal Company by the Bank of Spain under number 4311.

The Project

The project consists of the acquisition of commercial premises in Madrid, located at the intersection of Jaime el Conquistador, Embajadores and Cáceres streets, for refurbishment and leasing.

Location

Embajadores is a neighborhood of Madrid located in the Centro district, known for its cultural, historical and architectural diversity. Within Embajadores, you will find such emblematic areas as Lavapiés, one of the most multicultural neighborhoods in Madrid, known for its lively social, cultural and artistic life. Colorful streets, traditional markets such as the Mercado de San Fernando and numerous bars and restaurants offering a variety of international cuisines make Embajadores a unique and attractive place.

In addition to its rich cultural offerings, Embajadores is home to important points of interest such as the Atocha train station , the Reina Sofía Museum and the Plaza de Lavapiés. The neighborhood also stands out for its architecture, which combines historic buildings with modern renovations. Its central and well-connected location makes it an attractive option for both local residents and tourists. Embajadores is a reflection of the essence of Madrid: a mix of tradition and modernity, where the coexistence of different cultures and lifestyles creates a welcoming environment.

Mortgage Guarantee

The loan will be secured by a^1st degree mortgage on the assets and the building located at the intersection of Jaime el Conquistador, Embajadores and Cáceres streets.

According to the appraisal report made by GLOVAL VALUATION, the current appraisal amounts to €4.460.258,82. The loan to be made to the developer is €2,200,000, which means a Loan to Value (LTV) over the current appraisal of 49,32%.

Collateral agent

The constitution, preservation, management, administration and, if applicable, enforcement of the real estate mortgage rights on behalf of wecity investors will be carried out by an entity external to wecity.

The Collateral Agent chosen for this project is Ceiba Global Alternative Investments SL, a company dedicated to the provision of fiduciary services by contract or mandate”.

Ceiba Global is a company owned by Ceiba Legal SL, a law firm specialized in alternative financing that provides services to several investment vehicles.

In 2023, Ceiba Legal provided legal advisory services amounting to €150,000,000, formalizing and structuring more than €60,000,000 in alternative financing transactions.

At present, it is one of the most recognized firms in the Spanish market in the structuring of secured debt transactions.

Additionally, Ceiba provides legal advice to wecity throughout the life of the loan, from structuring to foreclosure.

Monitoring

The promoter must justify the use of the funds in each of the provisions 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.