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.

Magnum Hotel Group, S.L. requests financing from wecity for this investment opportunity.

Investor, before making your investment please read the basic information for the investor client.

The investment

The investment opportunity consists of a 1st degree mortgage loan to finance the acquisition of a residential building in Cádiz with a change of use to a hotel as set out in the General Urban Development Plan of Cádiz. The developer has already applied to the Municipal Heritage Commission for the change of use to hotel (expected to be obtained in early December), and once obtained, will apply for the building permit (expected in April 2024). The exit of wecity’s investors will take place with the sale of the asset or with the entry of bank financing for the development of the project, once the hotel licence and the building permit have been obtained.

The building has a total built-up area of 1,410 sqm for the development of a 3-star hotel. The 37-room project includes a rooftop with infinity pool and restaurant area. The developer has already been presented with two Letters of Intent by two leading hotel operators for the management of the future hotel. The building is mortgaged.

The developer provides equity of €464,610 (27.09%) of the total €1,714,610 required for the purchase.

The developer requests a €1,250,000 fixed-rate loan from wecity for the purchase of the land. This loan has a 1st degree mortgage guarantee.

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 the possibility of an extension of 3 additional months. The total estimated return is 11% for 12 months or 13.75% if the final term is with the 3-month extension. The interest payment + 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 return and maximum guarantees.

ECO Valuation

The current valuation for mortgage guarantee purposes (ECO Order 805/2003) amounts to €2,003,786.

The loan to be made to the company is €1,250,000, which means a Loan to Value (LTV) on the current valuation of 62.37%.

The independent appraisal company in charge of identifying the value is KRATA, whose corporate name is Krata SA, and is registered as an approved appraisal company by the Bank of Spain under number 4,323.

The project

3-star hotel in the historic centre of Cádiz. The project includes 37 rooms with a large rooftop with infinity pool and restaurant area.

Ground Floor (You can see the rest of the floors in the Documents section)

Elevation Calle Sopranis

Liocation

Cádiz. Calle Sopranis 17-19.

In the heart of the Andalusian Atlantic coast, Cadiz has managed to preserve an important historical legacy as a result of its commercial importance together with excellent beaches and exquisite regional cuisine. The Costa de la Luz, spread between the provinces of Huelva and Cadiz, offers a multitude of destinations that combine culture and leisure, as well as the proximity to the Doñana National Park, declared a World Heritage Site by UNESCO.

The mortgage guarantee

The loan will be secured by a 1st degree mortgage on the building located at Calle Sopranis, 17-19, Cádiz. The loan to be granted to the developer is €1,250,000, which represents a Loan to Value (LTV) over the current appraisal of 62.37 %.

Guarantee agent

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

In this case the designated Collateral Agent is BONDHOLDERS.

Bondholders, is a professional company specialized mainly in providing independent commission agent and escrow 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 nearly 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 will have to justify the use of the funds in each one of the applications. The use of the funds by the promoter will be monitored by a company external to wecity.

Datos de la oportunidad