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 , Único Homes, is requesting financing through wecity to finance the cancellation of the mortgage loan currently held by the developer with a debt fund in the amount of €1,625,731.90.

The plot has an area of 9,^751m2 and a building permit has been granted for the development of a development of 31 semi-detached single-family homes of 4 and 5 bedrooms of between 270-380^m2 built. Each unit includes a private garden, porch, terrace and garage for two cars. In addition to spacious common areas with swimming pool, paddle tennis court, children’s area and social club.

Currently, 32.25% of the homes have been sold (10 of 31 units) with reserves of 5,500 €/unit. Sales prices range from €470,000 to €510,000.

The project will be financed through a fixed-rate mortgage loan in the amount of €1,800,000, and will be secured by a 1st degree¹ mortgage guarantee^.

Initially a volume of €1,100,000 will be opened and once this first tranche of financing has been completed, a second tranche of €700,000 will be opened.

To date, the promoter has contributed its own funds in the amount of €989,405 (35.47%), which have been used to pay the acquisition, technical, legal, tax, etc. costs.

The repayment of the loan to wecity’s investors will take place once the pre-sales required by the bank (70%) have been reached and the developer is able to access bank financing through a developer loan. Único Homes is the developer of the project through the vehicle company “Único Alpha Residencial SL”.

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) with apossibility of extension of 3 additional months.

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

The project

Location and environment

El Peral, Valladolid is close to key points such as the Río Hortega University Hospital, the Vallsur Shopping Center, and outstanding schools such as the Nuestra Señora del Carmen School. Its proximity to Avenida de Zamora and easy access to the VA-30 ensure excellent connectivity with the center of Valladolid and other areas of the city.

In an area surrounded by essential services, local stores and green areas such as El Peral Park, this sector combines comfort and quality of life. In addition, its quiet and well-connected environment makes it an attractive location for both residential projects and commercial investments. A unique opportunity in an area of growing demand.

Mortgage collateral and appraisal

The loan will be secured by a^1st degree mortgage on plot 7 of sector 42 “El Peral”, Valladolid.

According to the appraisal report prepared by TINSA, the current appraisal amounts to €3,576,334.69. The loan to be made to the developer is 1,800,000 €, which means a Loan to Value (LTV) over the current appraisal of 50.33%.

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 Collateral Agent of the key factsheet.

Rating

wecity, as a provider of crowdfunding services and in compliance with Delegated Regulation (EU) 2024/358 supplementing Regulation (EU) 2020/1503 of the European Parliament and of the Council, provides a description of the method of credit rating
of the projects used to calculate the ratings. If the calculation is based on accounts that have not been audited, this shall be clearly stated in the description of the method.

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.io, 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 in 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.