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 in the registry 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 reflection 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 7 October 2020 on European providers of equity finance, it is hereby informed 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 developer Norden LDA, is requesting financing through wecity to cover the cancellation of a mortgage debt and the costs of completing the construction of seven townhouses in Vila Nova de Gaia, Porto, Portugal.

The plot has an approximate area of 2,404^m2, with a total constructed area of 828^m2. All the homes have already been sold (100%; 7 out of 7) and the buyers have made down payments of €821,617.28, which have been used to pay for the construction work, which is currently 70% complete.

The project will be financed through a €770,000 fixed-rate mortgage loan, which will be secured by a grade 1 mortgage guarantee. On the one hand, the funds will be used to cancel a mortgage on the plot of €150,000, of which €50,000 will be contributed by the wecity investors and the remaining €100,000 by the developer. On the other hand, the remaining funds will be used to complete the construction work.

The exit of the wecity investors will occur with the delivery of the homes to the buyers, once the First Occupancy License is obtained and the homes are deeded.

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

With a minimum investment of 500 €, you can participate in this opportunity with an excellent profitability and with the maximum guarantees. The total estimated profit is 12% for 12 months or 18% if the final term is with the 6 month extension.

The project

Location and environment

Porto, the second largest city in Portugal, has a population of approximately 237,000 inhabitants and covers about 45 square kilometers in the northwest of the Iberian Peninsula. It is known as the capital of northern Portugal and its historic center is a UNESCO World Heritage Site. It is located on the north bank of the Douro River, with Vila Nova de Gaia to the south.

Thanks to its strategic location, Porto has an excellent communications network that connects it easily with the rest of Portugal and Europe. In addition, Porto airport is only ten minutes away by car, providing flights to various international destinations.

As the seat of the municipality and capital of the District and Metropolitan Area of Porto, which includes 18 municipalities with nearly 1,300,000 inhabitants in total and an area of almost 2,400 km², the city is 320 kilometers from Lisbon.

Collateral and valuation

The current valuation for mortgage guarantee purposes amounts to €1,160,200.0. This represents a Loan to Value (LTV) over the current valuation of 66.37%.

The HET (Hypothetical Completed Building) valuation amounts to €1,910,420.00. This represents a Loan to Value (LTV) over the HET valuation of 40.30%.

The Loan to Value (LTV) ratio of the first sale is 18.06%.

The independent appraiser responsible for the identification of the value is TINSA, whose corporate name is PVW TINSA – Avaliações Imobiliárias, Lda. and which is registered with the CMVM as an approved appraisal company under number PAI/2003/0050.

The loan will have as 1st degree mortgage guarantee the land located at Travessa das Ribeirinhas, Vilar de Andorinho, Vila Nova de Gaia (Portugal) and the construction already completed of the seven villas of the development with an appraised value of €1,160,200.00.

Collateral agent

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

In this case, the appointed Collateral Agent will be the Report’s Collateral Agent.

Monitoring

EThe 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:

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 in the registry under number 9, with a favorable proposal from the Bank of Spain.

Norden Unipessoal LDA , requests financing from wecity for this investment opportunity. Investor, before making your investment, please read the basic information for the investor client. Past performance does not guarantee future performance.

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 finance, 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.”

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.