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 equity finance 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 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 cooling-off 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 October 7, 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 on the same terms as those of other investors without receiving preferential treatment or privileged access to information.”
The investment
- Purpose of the loan: To finance the acquisition costs and technical expenses of a development of 16 townhouses located at Avenida Balanzat, 12, Puerto de San Miguel, Ibiza.
- Type: Fixed-rate loan.
- Collateral: 1st degree mortgage collateral.
- Term: 9 months (+3 months possible extension).
- Required compliance: 4 months.
- Interest rate: 11.5% per annum.
- Interest payment: at maturity.
- Current appraisal (ECO): 6,105,254 €.
- Current LTV: 44.63%.
- Rating: AA
- Contributions:
- Promoter: €1,320,000 (32.63%)
- Wecity loan: 2.725.000 €.
- Minimum investment: 500 €.
- Maximum investment: 1.000 €.
The developer Bizkaiurban Gestión Integral, through the company Bizkaibiza Urban SL, is requesting financing from wecity for the acquisition of a plot of land located at Avenida Balanzat, 12, Puerto de San Miguel, Ibiza, on which a development of 16 semi-detached single-family homes with swimming pool and private garden will be built.
The site has an area of 8,115m2 distributed in 4,478m2 of rustic land and 3,637m2 of urban land on which the project will be developed with 3,069 m2 of land.2 constructed. In addition to the houses, each owner will be entitled to an area of rustic land of approximately 250m2.
The project has a building permit granted for the development of 16 single-family townhouses of 235m2. 25% of the development has already been marketed (4 of 16 homes) with down payments of €20,000 per home. Prices range from €1,000,000 to €1,500,000.
The project will be financed through a fixed-rate mortgage loan in the amount of €2,725,000, will be secured by a mortgage guarantee of 1er grade1.
1,320,000 (32.63%), which has been used to partially pay for the acquisition, architectural project, licenses, legal and technical expenses.
The repayment of the loan to wecity’s investors will occur with the entry of bank financing, once the pre-sales required by the bank are obtained.
Through wecity you can participate in a fixed rate loan operation with an annual interest rate of 11.5% for an estimated term of 9 months (4 months mandatory) with the possibility of extending for an additional 3 months .
The payment of interest + the return of the invested capital will be made at maturity.
The project
Location and surroundings
Port of San Miguel in Ibiza. Its proximity to the port, a tourist hub with restaurants, nautical activities and exclusive services, brings high value to the area. In addition, the sea views and access to crystal clear coves reinforce its attractiveness for those seeking luxury vacation properties or high-end developments.
The setting combines the serenity of nature with excellent connectivity to the rest of the island, making it an ideal option for both investment and boutique projects. The growing demand for property in Ibiza underlines the potential of this location as a unique and profitable opportunity.
Collateral and appraisal
The loan will be secured by a1st degree mortgage on the asset located at Avenida Balanzat, 12, Puerto de San Miguel, Ibiza.
According to the appraisal report prepared by GESVALT, the current appraisal amounts to €6,105,254.99. The loan to be made to the developer is €2,725,000, which means a Loan to Value (LTV) over the current appraisal of 44.63%.
Collateral agent
The constitution, conservation, management, administration and, if applicable, enforcement of the pledge on behalf of wecity’s investors shall be carried out by an entity external to wecity.
In this case, the designated Collateral Agent will be the one indicated in the Fundamental Data Sheet of the investment.
Rating
wecity, as a provider of equity financing 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 credit rating method
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 get any return on your investment. It is not a savings product and it is recommended not to invest more than 10% of your net worth in equity financing projects. You may not be able to assign the investment instruments when you wish. Even if you are able to sell them, you may suffer 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 desist, at any time, from 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 four calendar days after that date. To exercise their revocation rights, Investors may send an e-mail to the following address: reclamaciones@wecity.io, filling in the “subject” field of such e-mail as follows: “REVOCATION – Opportunity Name – Investor’s first and last name”. In the event that you have made a monetary contribution in connection with the financing offer, such amount will be returned as soon as possible to the wallet that you, as an investor/user of the “WECITY” Platform, have open in the “LEMONWAY” Payment Institution.
Credit risk
Credit risk is defined as the loss that may occur in the event of default 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 noncompliance
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 underperformance or delayed performance
The risk that the return will be lower than expected or that the project will default on principal or interest payments.
Investment illiquidity risk
The risk that investors may 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.