Description

wecity.io 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.

Olivo de Colmenar SL requests financing from wecity for this investment opportunity.

Investor, before making your investment please read the basic information for the investor client. Past performance does not guarantee future performance.

The investment

The investment opportunity consists of financing, together with the developer, the purchase of a plot of land by means of a bridging loan in the amount of €3,900,000 at a fixed rate with a 1st degree mortgage guarantee.

The plot is located in Colmenar Viejo, Madrid. The exit of wecity’s investors will take place with the entry of the bank financing (once the requirements established with the bank are met) and a capital increase by the partners.

The site, for which planning permission has been requested since October 2022, has an approximate buildable area of 6,016 m² where a development of 32 single-family homes with garage, communal areas and swimming pool will be developed. Currently the level of documented pre-sales is 40.62% (13 dwellings out of 32) – July 2023.

Agruppa Homes (sponsor of the project), through the vehicle company Olivo de Colmenar SL, is providing its own funds of 990,672 € (20.25%) of the total of 4,890,672 € needed to purchase the plot.

Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 12.25% for an estimated term of 6 months (3 months mandatory) with the possibility of an additional 3 month extension. The total estimated return is 6.13% for 6 months (or 9.18% 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 and no investment limit, 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 5,441,915.47 €.

The loan to be made to the company is 3,900,000 €, which means a Loan to Value (LTV) on the current appraisal of 71.66%.

The independent appraisal company in charge of identifying the value is TINSA, whose corporate name is TASACIONES INMOBILIARIAS SAU, and which is registered as an approved appraisal company by the Bank of Spain under number 4.313.

Rating

An external rating of the project has been requested from JLL, which gave it an A rating.

The Project

32 houses with garage, communal areas and swimming pool in Colmenar Viejo, Madrid.

Location

Located in Colmenar Viejo, in the north of Madrid, it is an attractive residential enclave surrounded by nature and mountains. It borders La Pedriza, in the Sierra de Guadarrama, considered one of the largest nature reserves in the Community of Madrid.

Its infrastructure includes schools, sports and health centres, as well as excellent connectivity with Madrid by road and public transport.

The community is noted for its high purchasing power, which drives demand for luxury properties. This combination of factors makes it an unbeatable option for the development of exclusive, high quality real estate projects.

Mortgage guarantee

The loan will be secured by a 1st degree mortgage on plot PR-4 of the SUP-7 “Cerca Tejera” sector of the PGOU of Colmenar Viejo (Madrid). The loan to be granted to the developer is 3,900,000 €, which means a Loan to Value (LTV) over the current appraisal of 71.66%.

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 be required to provide justification for the intended use of the funds for each disbursement they request. Additionally, an external company, separate from wecity, will be responsible for monitoring the promoter’s use of the funds.

Keys

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.