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.

Metales El Carmen 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 construction costs (currently in the earthmoving phase) of a plot of land in Ángel Urzáiz Street, 9, El Puerto de Santa María (Cádiz). The plot has an area of 325 m² on which a building of 508 m² is planned to be built , in which a development of a building with 8 dwellings and 9 parking spaces will be developed. Currently, the project has a building permit and the pre-sale level is 100% of the dwellings (8 of 8 units), with reserves of 5,000 €.

The project will be financed through a 600,000 € fixed rate mortgage loan with a 1st degree mortgage guarantee.

The developer (Metales El Carmen SL) has contributed its own funds in the amount of 127,250 €, which together with the 600,000 € requested from wecity investors, reach a total amount of 727,250 € necessary for the execution of the project. The exit of wecity investors occurs with the delivery of the houses to the buyers, once the first occupancy license is obtained.

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) and with the possibility of extending for an additional 6 months.

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 18 months including the extension.

The return of the capital together with ordinary interest will be at the maturity of the project.

ECO Valuation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to 323,543 €. This means a Loan to Value (LTV) over the current appraisal of 185%.

The appraisal on the assumption of a completed building amounts to € 1,354,839. This represents a Loan to Value (LTV) on HET appraisal of 44.29%.

The Loan to Value (LTV) on first disposal is 50.18%.

The independent appraiser in charge of identifying the value is UVE VALORACIONES, whose corporate name is UVE Valoraciones SA, and is registered as an Appraisal Company approved by the Bank of Spain under number 4631.

The Project

The project consists of the development of 8 dwellings in Ángel Urzáiz Street, 9, El Puerto de Santa María, Cádiz.

Location

El Puerto de Santa María, located on the coast of Cádiz, is a leading real estate destination for its combination of natural beauty, historical heritage and quality of life. With a temperate Mediterranean climate, golden sandy beaches and a rich cultural and gastronomic offer, this city has become a coveted location for buying and renting property. The city’s infrastructure is modern and has excellent road and rail connections, as well as a good connection to Jerez airport.

Real estate investors find opportunities in El Puerto de Santa María in the tourist rental market, especially during the high season, as well as in the development of new residential developments. The demand for holiday homes and second homes has grown considerably, driven by its attractiveness as a tourist destination and the quality of life it offers its residents. In short, El Puerto de Santa María not only offers an idyllic setting in which to live, but also interesting opportunities for real estate investment, both in the residential and tourist sectors.

Mortgage Guarantee

The loan will be secured by a^1st degree mortgage on the assets and the building located at Calle Ángel Urzáiz, 9, El Puerto de Santa María, Cádiz.

According to the appraisal report made by UVE VALORACIONES, the current appraisal amounts to €323,543. The loan to be made to the developer is 600,000 €, which means a Loan to Value (LTV) on the current appraisal of 185% and a Loan to Value of 1st disposition of 50.18%.

Collateral agent

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

The Collateral Agent chosen for this project is Ceiba Global Alternative Investments SL, a company dedicated to the provision of fiduciary services by contract or mandate”.

Ceiba Global is a company owned by Ceiba Legal SL, a law firm specialized in alternative financing that provides services to several investment vehicles.

In 2023, Ceiba Legal provided legal advisory services amounting to €150,000,000, formalizing and structuring more than €60,000,000 in alternative financing transactions.

At present, it is one of the most recognized firms in the Spanish market in the structuring of secured debt transactions.

Additionally, Ceiba provides legal advice to wecity throughout the life of the loan, from structuring to foreclosure.

Monitoring

The 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:

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.