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.

Round Robin Inversores SOCIMI, S.A. 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 a 1st degree mortgage loan to finance the purchase of a property located in Sagasta Street, number 4 (Madrid). The exit of the investors from wecity occurs with the sale of the property once the necessary adjustments have been completed.

The property, with a built area of 250 m², is a fourth floor with a usable area of 225 m², where the interior will be refurbished. The marketing process has not yet begun.

The total funds required for the purchase of the property amount to €1,243,334. The cooperative provides its own funds in the amount of €343,334 (27.61%) and requests a fixed-rate loan of €900,000 from wecity. 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 10% in an estimated term of 12 months (6 of obligatory compliance) with a possibility of extension of 3 additional months.

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 10% for 12 months or 12.5% if the final term is with the 3-month extension.

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

ECO Valuation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) of the property amounts to €1,490,331. This means a Loan to Value (LTV) over the current appraisal of 60.39%.

The independent appraisal company in charge of identifying the value is GESVALT, whose corporate name is Gesvalt Sociedad de Tasación S.A., and is registered as an approved appraisal company by the Bank of Spain under number 4455.

The project

The project consists of the refurbishment of a fourth floor located at Sagasta Street, number 4, Madrid.

Current state plan

Location

Madrid. Sagasta Street, number 4.

The property has an excellent location on Sagasta Street, one of the best residential areas of Madrid, in the heart of the Chamberí neighborhood of Madrid, the nerve center of the capital for the exclusivity of its homes, which mix a classic structure with modern interiors. Surrounded by multiple services and with unbeatable connections.

Very close to both Plaza de Bilbao, which links the areas of Justicia and Trafalgar, and Plaza de Alonso Martínez, where Almagro begins, the area with the highest demand in Madrid’s residential market. Its infrastructure includes schools, sports and health centers, as well as an excellent leisure and restaurant offer.

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

The mortgage guarantee

The loan will be secured by a 1st degree mortgage on the property at 4, Sagasta Street, Madrid.

According to the appraisal report made by GESVALT, the current appraisal amounts to €1,490,331. The loan to be made to the developer is 900,000 €, which means a Loan to Value (LTV) over the current appraisal of 60.39%.

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

El promotor deberá justificar el destino de los fondos en cada una de las diposiciones que solicite. El uso de los fondos por parte del promotor estarán monitorizados por una empresa externa a 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 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 investor compensation schemes established in accordance with Directive 97/9/EC of the European Parliament and of the Council (*). You may not receive any return on your investment. It is not a savings product and it is recommended that you do not invest more than 10% of your net assets in equity financing projects. You may not be able to dispose of the investment instruments at any time. Even if you are able to sell them, you may incur losses.

Pre-contractual cooling-off period for inexperienced investors

Inexperienced investors have a cooling-off period of four (4) days during which they may, at any time, revoke or withdraw, at any time, their investment offer or expression of interest in the equity financing offer without having to justify their decision and without incurring a penalty. The cooling-off period begins at the time the potential non-experienced investor makes an investment offer or expresses interest and expires after four calendar days from that date. To exercise their revocation rights, Investors may send an email to the following address: reclamaciones@wecity.com, filling in the “subject” field of such email as follows: “REVOCATION – Name of the Opportunity – Name and surname of the Investor”. In the event that you have made a monetary contribution linked to the financing offer, said amount will be returned as soon as possible to the wallet that, as an investor/user of the “WECITY” Platform, you have open with the “LEMONWAY” Payment Institution.

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 does not pay the principal and/or interest on the Loan.

Sector risk Risks inherent to the specific sector.

Such risks may be caused, for example, by a change in macroeconomic circumstances, a reduction in demand in the sector in which the equity financing project operates and dependencies in other sectors. In any case the investor should be aware that adverse economic conditions or cyclical changes may lead to a weakening of the Promoter’s ability to meet its financial commitments in connection with the loan.

Risk of default

The risk that the project promoter may be subject to bankruptcy proceedings and other events affecting the project or the project promoter that result in the loss of the investment for the investors. Such risks may be caused by a variety of factors, including, without limitation: (serious) change in macroeconomic circumstances, mismanagement, lack of experience, fraud, financing not matching the corporate purpose, failure to launch the product or lack of liquidity. In the event of insolvency of the Promoter, 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 Insolvency Law (hereinafter, the “Insolvency Law”), except for those amounts that pursuant to Article 272 of the Insolvency Law must be classified either as ordinary credit or as subordinated credit, as appropriate.

Risk of lower or delayed yield

The risk that the return is lower than expected or that the project defaults on the payment of principal or interest.

Investment illiquidity risk

The risk that investors will not be able to sell their investment. There is no active trading market for the loan, so the investor may 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.