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.

Quality Spaces SL requests funding from wecity for this investment opportunity.

Investor, before making your investment, please read the basic information for the investor. Past returns do not guarantee future returns.

Project Summary

Quality Spaces SL presents you with an Equity (Appreciation) opportunity, which involves financing the purchase of a plot of land in Torremolinos (Málaga), specifically located at Avenida del Carmelo 2, for the construction of 8 new residential properties with common areas and a swimming pool. The estimated duration of this opportunity is 24 months.

The funding target from wecity is €625,000, which, along with the promoter’s contribution of €135,000, a bank loan of €1,700,000 (approved by a financial institution), and buyer deposits totaling €87,283.75, amounts to a total of €2,547,283.75.

The funds will be used for the purchase of the plot, execution of the construction works, and associated expenses.

The purchase of the plot and the start of construction are expected to take place in April 2023, with an estimated duration of 24 months. The project currently has a valid construction permit, approved bank financing, and documented reservations for 6 out of 8 units.

Through wecity, you can participate in an equity (appreciation) operation with an estimated duration of 24 months, where the promoter contributes 18% of the equity (€135,000), aligning with wecity’s principle of “skin in the game.”

The promoter of this opportunity requests a minimum investment of €500 from wecity investors for a 24-month term.

Valoración y Rating

The current valuation (ECO appraisal) conducted by ST Sociedad de Tasación amounts to €1,592,519.62.

The Hypothetical Completed Building (HET) valuation conducted by ST Sociedad de Tasación amounts to €2,930,626.

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

Project

It is a plot of land with an area of 944.74 m2. The project will consist of 8 residential units with common areas and a swimming pool.

Localización

The project is located in the town of Torremolinos (Málaga), one of the main destinations on the Costa del Sol, nestled near the Sierra de Mijas mountain range. The excellent coastline, combined with the pleasant climate, are some of the attractions that this Andalusian town offers, just 12 km from the city of Málaga.

A few meters away, the neighborhood of La Carihuela stands out, with its more than 2 km of beach, which remains a worldwide reference on the Costa del Sol and one of the most characteristic areas of the municipality. Along its promenade, you will find numerous shops, bars, restaurants, and renowned beach clubs.

Key Points

·

· Investment Type: Equity

· Project Type: Residential

· Purpose of Financing:

“Financing intended for the construction of a building consisting of 8 residential units and 9 parking spaces at Avenida del Carmelo No. 2, Torremolinos (Málaga), cadastral reference No. 5230813UF6553S0001QS, according to the Basic Project drafted by architect Mr. Ignacio Ruiz Veguilla, member No. 5.194 of the COA Sevilla; Building Permit No. 2807/2022.”

· Capital Structure:

· Quality Spaces SL: €135,000 (18% of equity)

· wecity investors: €625,000 (82% of equity)

· Bank loan: €1,700,000

· Bank Financing: Approved

· Construction Permit: Granted

· Construction Budget: Finalized

· Estimated Term: 24 months

· Profit Distribution: At maturity

· Minimum Investment: €500

Economic Scenarios:

According to the criteria of the CNMV, in Equity (Appreciation) projects, in addition to the base scenario (favorable) presented by the promoter and verified by wecity, two additional scenarios showing potential variations in the business plan must be published.

To calculate the estimated profitability (ROE), the formula is: ROE = (Income – Costs) / Equity.

(1) Estimated income defined by the promoter generated from the sale of the completed project. The sales amount of the project has been verified by a valuation report conducted by an appraisal entity in accordance with the ECO/805/2003 Order of March 27, regarding valuation standards for real estate and certain rights for certain financial purposes.

(2) Cost estimation: includes all costs necessary for the development of the opportunity, the financial resources required to complete the construction of the project, and the financial resources necessary for the development of the promotion not associated with construction, such as sales commissions, promoter fees, bank financing, taxes, etc.

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.