Description

WECITY complies with the provisions of Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European providers of participative financing services for companies and Title V of Law 5/2015 on the promotion of business financing as amended by Law 18/2022 of 28 September on the creation and growth of companies. It is authorized by the CNMV as a Participatory Financing Service Provider, registered in the registry under number 9, with favorable proposal from the Bank of Spain.

Whiteni Flex Living SL,requests financing to wecity for this investment opportunity. Investor, before making your investment read the basic information for the investor client. Past performance does not guarantee future performance.

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 finance, 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 via Equity or Plusvalía (participating directly in the SPV) the acquisition and rehabilitation of 5 dwellings in Madrid, 28 Monteleón Street. The surface area of the dwellings is: 3 dwellings of 78.40^m2, 1 dwelling of 35.45^{m2 and} 1 dwelling of 35.70^m2, which means a total surface area of 306^m2. The project has a building permit for the complete refurbishment of the building and work will begin in September 2024. Marketing of the homes has not yet begun.

The project will be financed through a capital increase of €900,000.

The developer (Whiteni Flex Living SL) has contributed its own funds in the amount of €650,000, which together with the €900,000 requested from wecity investors, make a total amount of €1,550,000 required for the acquisition of the asset . To cover the remaining costs of the project, the funds will be supplemented with a €1,200,000 bank developer loan, which is currently being negotiated with various banks.

The exit of the investors from wecity will take place with the delivery of the homes to the buyers, once the construction work has been completed and the first occupancy license has been obtained.

Through wecity and with a minimum investment of 500 €, you can participate in an equity operation with an estimated duration of 12 months. To calculate the estimated total return (ROE) you can see the economic scenarios.

The Project

Acquisition and rehabilitation of 5 dwellings in Madrid (28 Monteleón Street). The dwellings have a surface area of: 3 dwellings of 78.40^m2, 1 dwelling of 35.45^{m2 and} 1 dwelling of 35.70^m2, which means a total surface area of 306^m2.

Elevation at C/ de Monteleón 28 and plans of the 5 dwellings (2C, 3C, 4A, 4B, 4C).

Facade to C/ de Monteleón 28 and 3D visualization of the interior of the house.

Location

San Bernardo, located in the Chamberí district of Madrid, is a centrally located neighborhood with excellent accessibility. Connected by metro lines 2 and 4 and several bus lines, it offers easy access to the entire city. This neighborhood combines residential tranquility with modern urban life, standing out for its renovated historic buildings, a wide range of services and stores, and a varied gastronomic offer. Its safe and familiar environment makes it ideal for families, students and professionals.

The real estate market in San Bernardo is competitive, with a wide variety of properties ranging from elegant apartments in historic buildings to modern apartments with all the amenities. The high demand for properties makes this neighborhood an excellent option for both buying and renting. In addition, its proximity to renowned educational institutions, green spaces such as the Parque del Oeste and a rich cultural offer, make San Bernardo an ideal place to live and invest in Madrid.

Economic scenarios

According to CNMV criteria, in addition to the base scenario (favorable) proposed by the developer and which wecity contrasts, in Equity projects, 2 additional scenarios must be published showing potential variations in the business plan.

To calculate the estimated return on equity (ROE) = (I – C) / EQ

_{(1) Estimated income defined by the developer from the sale of the completed project. The sale amount of the project has been verified by an appraisal report carried out by an appraisal entity in accordance with Order ECO/805/2003 of March 27, 2003, on valuation standards for real estate and certain rights for certain financial purposes.}

_{(2) Estimated costs: the total costs necessary for the development of the opportunity, the economic resources necessary to complete the construction of the project and the economic resources necessary for the development of the promotion not associated with the construction, such as sales commissions, developer’s promotion, bank financing, taxes, etc.}

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 🇪🇺

Compliance 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:

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.