Description
wecity complies with Law 5/2015 and Regulation (EU) 2020/1503 of the European Parliament and the Council of October 7, 2020, regarding European providers of crowdfunding services for businesses. It is authorized by the CNMV (National Securities Market Commission) as a Participatory Financing Platform registered under number 30, with a favorable proposal from the Bank of Spain.
Zedant San José SL requests funding from wecity for this investment opportunity, which consists of a loan with a pledge guarantee, intended to finance part of the purchase of land located at Calle San José Obrero 20, Pozuelo de Alarcón (Madrid).
Investor, before making your investment, please read the basic information for the investor. Past returns do not guarantee future returns.
Project Summary
Zedant San José SL presents you with an opportunity for a Fixed-Rate Loan with a Pledge Guarantee. This guarantee consists of pledging the shares of the development company, so that wecity investors, if necessary and represented by the designated guarantee agent, would take control of the holding company of the land.
The land has an approximate total area of 4,320 m2 and is currently in the demolition license phase, with subsequent acquisition of the construction permit.
The business plan of the developer is to construct 14 row houses with private gardens, garages, and a communal swimming pool.
The developer contributes approximately 22% of equity (€940,000) out of the total purchase and associated expenses (€4,240,000), in addition to the granted demolition license (subject to payment of corresponding fees), the construction permit (subject to completion of demolition works), and 10 out of 14 documented reservations (70%), demonstrating their high commitment to the project. In addition to the contributions from the developer and wecity investors, a bank financing of €2,000,000 is expected for the land acquisition.
The promoter requests a loan of €1,300,000 from wecity for the land purchase. This loan has a Pledge Guarantee on the development company.
Through wecity, you can participate in a fixed-rate loan operation with an annual interest rate of 12% over an estimated period of 24 months. The total estimated profit is 24%. Interest payments plus the return of the invested capital will be made at maturity (month 24).
With a minimum investment of €500 and no investment limit, you can participate in this opportunity with excellent profitability and strong guarantees.
“If you invest 100,000 € in this opportunity, with an estimated total profit of 24%, your expected total profit would be 24,000 €.”
Valuation and Rating
The current valuation for the purpose of the pledge guarantee (according to Order ECO 805/2003) amounts to €5,058,133.31. This represents a Loan to Value (LTV) ratio of 42.51% based on the current valuation.
Project
The project consists of constructing 14 single-family row houses with private gardens, along with garages and a communal swimming pool.
Planos
Images
Areas and Location
Located on Calle San José Obrero 20 in Pozuelo de Alarcón, one of the wealthiest municipalities in the Community of Madrid, and situated about 10 km away from the city. It borders Aravaca to the north, Casa de Campo to the east, Ventorro del Cano to the south, and Alcorcón, Boadilla del Monte, and Majadahonda to the west.
Pozuelo de Alarcón is a peaceful place with excellent transportation connections and unbeatable amenities. It is home to several public and private university campuses, the renowned Ciudad de la Imagen, various shopping centers, and the large Kinépolis cinema complex. The town is easily accessible as it is connected by several major roads, including the A-6, M-500 (Carretera de Castilla), and the M-40 ring road.
Collateral
The loan will be secured by pledging the shares of the development company, Zedant San José SL, which owns the land subject to the loan.
The independent appraisal company responsible for determining the value of the land is THIRSA, whose corporate name is THIRSA VALORACIÓN Y TASACIÓN SL, registered in the Register of Specialized Appraisal Companies of the Bank of Spain under number 4459 on October 4, 1994.
According to the appraisal report conducted by THIRSA, the current valuation amounts to €5,058,133.31. The valuation based on the assumption of a completed building (HET – Hypothetical Completed Building) is €14,318,899.55.
The loan to be provided to the development company is €1,300,000, representing 31% of the total purchase cost plus associated expenses amounting to €4,240,000. This results in a Loan to Value ratio of 42.51% based on the current valuation.
The establishment, maintenance, management, administration, and, if necessary, execution of the real rights of the pledge guarantee on behalf of the investors will be handled by an external entity separate from wecity.
Monitoring
The promoter will be required to provide justification for the use of funds in each disbursement they request.
The utilization of funds by the pomoter will be monitored by an external company separate from wecity.
Bullet Points:
· Investment Type: Fixed-Rate Loan.
· Interest Payment: At maturity (month 24).
· Guarantee: Pledge Guarantee.
· Purpose of the loan:
“Purchase and associated expenses for the development of a real estate project on property number 51.465 located in Los Horcajos, Pozuelo de Alarcón (Madrid), Calle San José Obrero No. 20, registered in the Property Registry No. 1 of Pozuelo de Alarcón, folio 184, book 854, volume 861, property 11.568. CRU: 28127000563901 Cadastre Reference: 2675605VK3727S0001LG.”
· Contribution by the Developer, wecity investors, and planned bank financing:
· Zedant San José SL: 22% of equity (€940,000) for the purchase of the land plus associated expenses (€4,240,000), as well as documented reservations for 70% (10 out of 14) of the units, granted demolition license, and construction permit conditioned on the completion of demolition works.
· wecity investors: €1,300,000.
· Planned bank financing: €2,000,000.
· Property Type: New Construction – Residential.
· Interest Rate: 12% per annum.
· Estimated Total Return: 24%.
· LTV based on current valuation: 42.51%.
· Loan Term: 24 months.
· Minimum Investment amount: €500.
