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.

VILLAS DEL NOGAL S COOP, 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 an urban plot located in Colmenar Viejo, Madrid, for the subsequent development of a building of 33 homes. The development will be carried out under a cooperative system.

The plot has a surface area of 2,942.39^m2, on which the development will be built, in the 3,812^m2 of buildable area. The future homes will have a garden, swimming pool and common areas, as well as 58 parking spaces. At the commercial level, 18.18% of the dwellings have been reserved (6 of 33).

The project will be financed through a fixed-rate mortgage loan with a^1st degree mortgage guarantee in the amount of €2,660,000.

1,362,000 (34%), which will also be used to finance the purchase. The VAT payment will be made through a policy with a bank.

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 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 made at maturity.

With a minimum investment of 500 €, you can participate in this opportunity with an excellent profitability and with the maximum guarantees. The estimated total return is 11% for 12 months or 16.5% 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 3,854,918.10 €. This means a Loan to Value (LTV) over the current appraisal of 69%.

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

The Project

Location

The development is located in Cerca de la Tejera, a new urban development in Colmenar Viejo that has all the necessary services.

Access: A few minutes from the exit to the M-607 and public transport network (Renfe Cercanías and bus lines) that connect with Madrid and with easy access to the center of Colmenar Viejo, in an exceptional location where there is no hustle and bustle.

Shopping areas: Located in an area close to El Ventanal de la Sierra Shopping Center, or supermarkets such as Mercadona and Ahorra Más.

Sports centers: such as the Lorenzo Rico Sports Center, Martín Colmenarejo or La Magdalena; the Alberto Ruíz soccer field or the municipal swimming pools of Santa Teresa or Colmenar Viejo.

School facilities: Schools such as Federico García Lorca or Zurbarán, Institutes such as Marqués de Santillana or C.E.I.P. Fuensanta and nursery schools such as El Almendro, Los Enebros or El Patito feo Nursery.

A comfortable and quiet location, which will allow you to have a life with all your needs covered.

The mortgage guarantee

The loan will be secured by a^1st degree mortgage on the asset and the building, located at 1-3 Margarita Salas Street, Colmenar Viejo (Community of Madrid).

According to the appraisal report made by UVE, the current appraisal amounts to €3,854,918.10. The loan to be made to the cooperative is €2,660,000 , which means a Loan to Value (LTV) over the current appraisal of 69%.

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.