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.

Desarrollos Ilex Alcobendas SL is requesting financing from wecity for this investment opportunity, which consists of a bridge loan with a 1st degree mortgage guarantee to finance 50% of the purchase of land located at Camino Viejo de Burgos 25 B, Valdebebas (Madrid).

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

Project Summary

Desarrollos Ilex Alcobendas SL presents an opportunity for a Fixed Rate Loan with 1st Degree Mortgage Guarantee.

The land has a total surface area of approximately 1,289 sqm and is currently in the process of obtaining a subdivision license for the division of the plot into 4 independent units, and the subsequent processing of the building license by ECU (Entidades Colaboradoras Urbanísticas).

The promoter’s future business plan is the construction of 4 semi-detached villas with private garden and swimming pool. As this is a bridge loan, it will not be necessary to wait for construction or sales, since the exit for wecity investors is foreseen by obtaining bank financing or with the promoter’s own funds.

The promoter contributes approximately 50% of its own funds (€ 686,887) on the total purchase transaction (€ 1,386,887), in addition to 100% of the documented reserves, which demonstrates its high commitment with the project.

The promoter requests a € 700,000 fixed-rate loan from wecity for the purchase of the land. This loan has a 1st degree mortgage guarantee on the plot.

Through wecity you can participate in a fixed rate loan opportunity with an annual interest rate of 9% for an estimated term of 12 months. The total estimated return is 9%. The interest payment + the return of the invested capital will be made at maturity (month 12).

With a minimum investment of € 500 and no maximum investment limit, you can participate in this opportunity with an excellent profitability and with the maximum guarantees.

It is expressly stated that the formalization of the loan deed may be delayed, due to the need for approval by the seller of the controls on prevention of money laundering and financing of terrorism (PBCFT), so that the accrual of interest will begin, either in the usual 15 days, or in compliance with the PBCFT.  

Register for free o Enter to your profile to download the teaser of the project

“If I invest € 100.000 i will have an estimated total profit of  € 9.000 ”

 Appraisal and Rating

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to € 2,297,577.76. This represents a Loan to Value (LTV) over the current appraisal of 30.47%.

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

Register for free or Enter to your profile to see the Appraisal and Rating in the Documents section.

The Project

The future project involves the construction of 4 semi-detached villas, with private garden and swimming pool.

Floor Plans

3D IMAGES

Environment and Location

The project is located in Valdebebas, Hortaleza-Barajas district (Madrid).

Valdebebas is the major urban development project in the north of the city of Madrid. More than 11,000 people already live in the area, and new residents are constantly being added to the existing housing developments. The identity and character of the apartments in Valdebebas in its successive stages is to be part of the creation of a new urban quality area with economic activity, quality housing, state-of-the-art facilities, green spaces, and perfect communication with the rest of the city and its surroundings.

Collateral

The loan will be secured by a 1st degree mortgage on the land located at Camino Viejo de Burgos 25 B, Valdebebas (Madrid).

The independent appraisal company in charge of identifying the value of the plot is KRATA, whose corporate name is KRATA SA SOCIEDAD DE TASACIÓN and is registered as an approved appraisal company by the Bank of Spain under number 4323.

According to the appraisal reported by KRATA, the current appraisal amounts to € 2,297,557.76. 

The loan to be made to the promoter is € 700,000, corresponding to the 50% of the total purchase price, which amounts to € 1,386,887. This represents a Loan to Value over current appraisal of 30,47%.

Security 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 must justify the use of the funds in each of the applications.

The use of the funds by the promoter will be monitored by an external company.

Bullet Points:

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.