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.

Zocalo y Zapata 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 costs of a house in Chiclana de la Frontera, Cádiz, which will be demolished and on which 4 detached houses will be developed.

The house has a plot area of 2,262^{m2 ,} once demolished, 4 detached single-family houses of 141.35^m2 will be built on plots of 522.40^m2. The future villas will have four bedrooms, garden and swimming pool. At the commercial level, 100% of the units have been reserved (4 of 4) with deliveries of 33,000 € per unit. The combined selling price of the 4 homes is € 2,520,000. The developer is preparing the Basic Project for the license and plot application.

The project will be financed through a fixed rate mortgage loan with a^1st degree mortgage guarantee for an amount of €550,000, which will be used for the purchase of the asset.

431,238.20 (43.94%), which will be used for the acquisition of the asset. The construction costs will be borne by the developer and the amounts committed by the purchasers throughout the project.

Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 12% for an estimated term of 18 months (6 months mandatory) with the possibility of extending for an additional 6 months.

The exit of the investors occurs with the delivery of the houses to the buyers.

The payment of interest + the return of the invested capital will be madeat maturity.

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 18% for 18 months or 24% if the final term is with the 6 month extension.

ECO Valuation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €1,197,746. This represents a Loan to Value (LTV) over the current appraisal of 43.94%.

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

Location

The project is located in the exclusive area of Sancti Petri, in Chiclana de la Frontera, province of Cadiz, one of the most coveted areas of the Costa de la Luz. Its privileged location, just steps away from the stunning golden sandy beaches and the calm waters of the Atlantic, offers residents an unparalleled environment of natural beauty and serenity.

Surrounded by the landscapes of the Bay of Cadiz Natural Park and next to the Sancti Petri marina, this enclave provides a perfect combination of tranquility and comfort, ideal for those seeking a coastal retreat without sacrificing the best facilities. A few minutes drive away is the center of Chiclana, with its varied offer of restaurants, stores and high quality services.

Sancti Petri also offers close access to exclusive golf courses and beach clubs, making this area a privileged destination for lovers of sports and outdoor life. In addition, its excellent connection to cities such as Cadiz and Seville ensures a first class cultural and leisure offer, consolidating this location as one of the most attractive places to live or invest in the coast of Cadiz.

The mortgage guarantee

The loan will be secured by a^1st degree mortgage on the asset and the building, located at carretera de la Barrosa, 38, Chiclana de la Frontera, Cádiz.

According to the appraisal report made by UVE, the current appraisal amounts to €1,197,746. The loan to be made to the developer is 550,000 € , which means a Loan to Value (LTV) over the current appraisal of 43.94%.

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 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.