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.

KUBO DISEÑO Y OBRA 2022 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 of 4 plots located at 4-10 Georges de la Tour street, Absubia urbanization, Jávea (Alicante), where 4 luxury villas with private garden and swimming pool will be developed. The plots have a surface area of 1,000 m2 each and the projected dwellings will be between 328 m2 and 428 m2.

The project has a license processed through Entidades Colaboradoras Urbanisticas (ECU) and marketing will start in July.

The project will be financed through a mortgage loan of €1,150,000 at a fixed rate with a 1st degree mortgage guarantee.

The developer, Makekubo, has contributed its own funds in the amount of €525,167, which together with the €1,150,000 requested from wecity investors, makes a total amount of €1,675,167 necessary for the acquisition of the land and payment of the technical costs. the repayment of the loan from wecity investors will be made with the sale of the four plots of land.

Through wecity you can participate in a fixed rate loan operation with an annual interest rate of 11% for an estimated term of 12 months (6 months mandatory) with a possibility of extension for an additional 6 months. The total estimated return is 11% for 12 months or 16.5% if the final term is 18 months with the extension. The interest payment + the return of the invested capital will be made at maturity.

With a minimum investment of 500 €, you can participate in this opportunity with an excellent profitability and with maximum guarantees.

ECO Appraisal and Mortgage Guarantee

The loan will have as 1st degree mortgage guarantee the plots located at 4, 6, 8, 10, George de la Tour Street, Jávea (Alicante).

The current appraisal for mortgage guarantee purposes (Order ECO 805/2003) amounts to 2,722,905 €. This means a Loan to Value (LTV) over the current appraisal of 42.23%. The independent appraiser in charge of identifying the value is VALUM, whose corporate name is Instituto de Valoraciones SA, and which is registered as an Approved Appraisal Company by the Bank of Spain under number 4498.

The project

Location

Jávea, on the Costa Blanca in Alicante, is one of the most exclusive and sought-after areas in the Spanish real estate market. Its natural setting, with the Montgó Natural Park and Mediterranean beaches, attracts those seeking a luxurious and tranquil lifestyle. The real estate on offer includes luxury villas, modern apartments and charming traditional houses, many with sea views.

The high demand is due to its sunny climate, excellent infrastructure and proximity to essential services. Jávea has renowned educational centers such as Xàbia International College and Lady Elizabeth School, and outstanding health services such as the HLA San Carlos Hospital, and a wide range of gastronomic and leisure facilities, together with recreational activities such as sailing and golf, complement its attractive Mediterranean lifestyle. Jávea is ideal for both living and investing, combining nature, quality of life and solid infrastructure.

Collateral Agent

The creation, preservation, management, administration and, as the case may be, enforcement of real estate mortgage rights on behalf of wecity investors shall be the responsibility of an entity external to wecity.

In this case, the designated Collateral Agent is CEIBA LEGAL.

Bondholders, is a professional company specialized mainly in providing independent commission agent services and independent agent 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 close to 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.