Description

wecity complies with Law 5/2015 and Regulation (EU) 2020/1503 of the European Parliament and of the Council of October 7, 2020, regarding European providers of crowdfunding services for businesses. It is authorized by the CNMV (National Securities Market Commission) as a Participatory Financing Platform registered under number 30, with a favorable proposal from the Bank of Spain.

Alba-Salina SL projects request funding from wecity for this investment opportunity, which consists of a first-ranking mortgage-backed loan aimed at financing the completion of a residential development located at Calle La Herrada, Parcel 12.1, Los Montesinos (Alicante).

Investor, before making your investment, please read the basic information for the investor. Past returns do not guarantee future returns.

Project Summary

Alba-Salina SL presents you with an opportunity for a Fixed-Rate Loan with a First-Range Mortgage Guarantee.

The plot of land has an approximate total area of 1,072 m2 and is currently in the construction phase, with approximately 30% of the project completed. The development consists of 6 residential units, with 4 of them being mortgaged.

The developer has contributed 35% of the equity (€418,800) out of the total project cost (€1,217,217), along with 2 documented reservations (for the 4 mortgaged units).

The developer requests a loan of €500,000 from wecity at a fixed interest rate to complete the construction. This loan is secured by a First-Range Mortgage Guarantee.

Through wecity, you can participate in a fixed-rate loan operation with an annual interest rate of 12% over an estimated period of 6 months (mandatory term). The total estimated profit is 6%. Interest payments plus the return of the invested capital will be made at maturity (month 6).

With a minimum investment of €500 and no investment limit, you can participate in this opportunity with excellent profitability and maximum guarantees.

Valuation and Rating

The current valuation for mortgage guarantee purposes (according to Order ECO 805/2003) amounts to €498,041.05. This represents a Loan to Value (LTV) ratio of 100.39% based on the current valuation.

The valuation based on the assumption of the completed building amounts to €943,161.38. This results in an LTV ratio of 53.02% based on the hypothetical completed building valuation.

The Loan to Value (LTV) ratio for the initial disbursement is 60.24%.

An external rating for the project has been requested from the consulting firm JLL, which has assigned it a AA rating.

Project

The project involves completing the construction of 6 single-family homes, with 4 of them being mortgaged. These homes feature private gardens and swimming pools.

Images of similar housing from previous phases

Areas and Location

The project is located in the town of Los Montesinos, in the province of Alicante. Situated in the triangle formed by the cities of Alicante, Murcia, and Cartagena, it offers quick access to these cities via well-maintained roads. Additionally, the coastal city of Torrevieja, known for its rich tourist tradition in the Valencian Community, is only 10 km away. The municipality of Los Montesinos is surrounded by agricultural land and offers beautiful natural views of the Torrevieja Salt Flats.

Collateral

The loan will have a first-range mortgage guarantee on the land and construction located at Calle La Herrada, Parcela 12.1, Los Montesinos (Alicante).

The independent appraisal company responsible for determining the value is VALMESA, whose corporate name is VALORACIONES MEDITERRÁNEO SA, and it is registered as an Approved Appraisal Company by the Bank of Spain under number 4,350.

According to the valuation report conducted by VALMESA, the current appraisal value amounts to 498,041.05 € (4 dwellings).

The loan to be provided to the development company is 500,000 €, resulting in a Loan to Value ratio of 100.39% based on the current appraisal.

Security Agent

The establishment, maintenance, management, administration, and, if necessary, execution of the real estate mortgage rights on behalf of the investors will be handled by an external entity to wecity.

In this case, the designated Guarantee Agent is BONDHOLDERS.

BONDHOLDERS is a professional company specialized in providing commissioner and independent agent services for various asset classes and under numerous international jurisdictions.

In recent years, BONDHOLDERS has been appointed as an agent and commissioner in over 400 transactions, representing a total of nearly 200 billion euros in debt.

Among their key clients are financial institutions, institutional clients, asset managers, and sovereign government agencies, among others.

Currently, they are one of the leading providers of independent fiduciary services in Europe.

Monitoring

The promoter will be required to provide justification for the use of funds in each disbursement they request.

The utilization of funds by the promoter will be monitored by an external company independent of wecity.

Bullet Points:

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 the 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 the 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. This is not a savings product and you are advised not to invest more than 10% of your net wealth in crowdfunding projects. You may not be able to sell the investment instruments whenever you want. Even if you can assign them, you could suffer losses.

Pre-contractual cooling-off period for inexperienced investors

Inexperienced investors have a cooling-off period of four (4) days during which they can, at any time, revoke or withdraw, at any time, from their investment offer or expression of interest in the participatory financing offer without having to justify their decision and without incurring a penalty. The cooling-off period begins at the moment when the potential inexperienced investor makes an investment offer or expresses interest and expires four calendar days from that date. To exercise their right of revocation, Investors may send an email to the following address: reclamaciones@wecity.io, filling in the “subject” field of the email as follows: “REVOCATION – Name of the Opportunity – Full name of the Investor”. In the event that a monetary contribution has been made in connection with the financing offer, this amount will be returned as soon as possible to the wallet that, as an investor/user of the ‘WECITY’ Platform, has been opened in the Payment Institution ‘LEMONWAY’.

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 will not pay the principal and/or interest of the Loan.

Sector risk Risks inherent to the specific sector.

These risks may be caused, for example, by a change in macroeconomic circumstances, a reduction in demand in the sector in which the participatory financing project operates and dependencies on other sectors. In any case, the investor must bear in mind that adverse economic conditions or cyclical changes may lead to a weakening of the Promoter’s ability to meet its financial commitments in relation to the loan.

Risk of default

The risk that the project developer may be subject to insolvency proceedings and other events affecting the project or the project developer that result in the loss of the investment for the investors. These risks may be caused by a variety of factors, including, but not limited to: (serious) change in macroeconomic circumstances, mismanagement, lack of experience, fraud, financing not fitting with the corporate purpose, failure in the product launch or lack of liquidity. In the event of the Promoter’s bankruptcy, 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 Bankruptcy Law (hereinafter, the “Bankruptcy Law”), except for those amounts that, in accordance with Article 272 of the Bankruptcy Law, should be classified either as ordinary credit or as subordinated credit, as appropriate.

Risk of lower or delayed return

The risk that the return will be lower than expected or that the project will default on the payment of principal or interest.

Risk of illiquidity of the investment

The risk that investors will not be able to sell their investment. There is no active trading market for the loan, so it is possible that the investor will 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.