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.

Premier Tilos SL, 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 developer is requesting a fixed rate loan with a 1st degree mortgage guarantee in the amount of €8,500,000 in different phases. The financing structure will be as follows:

PSFP investors: maximum contribution of €5,000,000.

External investors: minimum contribution of €3,500,000.

Wecity investors and external investors will hold a mortgage guarantee on an equal footing.

In accordance with the provisions of Regulation (EU) 2020/1503 of the European Parliament and of the Council on European providers of equity finance services for enterprises, the maximum amount of funding raised by investors from a PFSP must be set at €5,000,000.

The promoter activates a first phase of financing in the amount of €5,000,000. Of which the wecity investors will provide an initial tranche (Tranche A) of €3,000,000.

Of the €5,000,000, a first tranche (Tranche A) will be opened to wecity investors for a volume of €3,000,000.

The purpose of the financing is:

Cancellation of mortgage debt in the amount of €2,500,000 used in the acquisition of 84.58% of the land. The total amount of the

Acquisition of the remaining 15.42% of the plot in the amount of €1,588,089.

The remaining funds will be used to cover urbanization costs.

The exit of the wecity investors occurs with the entry of the bank developer loan, once the developer has obtained the building permit and the sales required by the bank. In this project, the developer will be able to start the building works once the basic urbanization works are executed, since the Partial Plan allows simultaneity.

Plot R-1 is located in the SUNC-RT-1 “Cortijo Merino” sector, a new development in Malaga, next to the well-known Zeta District. It has an area of 7,722.05 m2 and a buildable area of 16,988 m2 where more than 165 free dwellings with garages, storage room, swimming pool and common areas are planned. The plot is an unconsolidated urban land that has the Final Approval of the Partial Plan, Reparcelling Project and Urbanization Project, so the urbanization works can start immediately.

Marketing will begin with the start of the urbanization works. The estimated sales volume according to the ECO appraisal is 56,821,387 €.

The developer provides its own funds in this phase I in the amount of €8,000,000 (48.48%) which, together with the €8,500,000 requested from wecity investors, add up to a total of €16,500,000 necessary for the acquisition of the asset and the execution of the urbanization works.

Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 12% for an estimated term of 18 months (6 months mandatory) with a possibility of extension for an additional 6 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 return is 18% for 18 months or 24% if the final term is with the 6 month extension.

The promoter will make an annual payment of ordinary interest + another payment of ordinary interest together with the amortization of the principal at the maturity of the project.

ECO Tasation

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €11,611,775. This means a Loan to Value (LTV) on current appraisal of 43.05%.

The Loan to Value (LTV) on first drawdown is 38.46%.

The independent appraiser in charge of identifying the value is SAVILLS, whose corporate name is Savills Tasaciones y Valoraciones SAU, and which is registered as an approved appraisal company by the Bank of Spain under number 4632.

The project

The SUNC RT-1 “Cortijo Merino” sector is one of the main urban developments in the city of Malaga. Located next to Distrito Zeta, both areas form the main axis of growth of the city.

It is an ambitious project that will house more than 1,250 public and private housing units. The developer developed the project together with Neinor Homes, majority owner of the remaining free plots in the sector, and the Malaga City Council.

The sector is located in a strategic area in the city’s main expansion zone, next to important developments such as the Teatinos university campus, the PTA (Parque Tecnológico de Andalucía), the EXPO 32 grounds, the airport and the Trade Fair and Congress Center.

Location

The SUNC RT-1 “Cortijo Merino” sector is one of the main urban developments in the city of Malaga. Located next to Distrito Zeta, both areas form the main axis of growth of the city.

It is an ambitious project that will house more than 1,250 public and private housing units. The developer developed the project together with Neinor Homes, majority owner of the remaining free plots in the sector, and the Malaga City Council.

The sector is located in a strategic area in the city’s main expansion zone, next to important developments such as the Teatinos university campus, the PTA (Parque Tecnológico de Andalucía), the EXPO 32 grounds, the airport and the Trade Fair and Congress Center.

The mortgage guarantee

The loan will be secured by a 1st degree mortgage on the assets and the construction, on plot R-1 of the SUNC-RT-1 sector “Cortijo Merino”, Malaga.

Wecity’s investors and external investors will have an equal mortgage guarantee.

According to the appraisal report carried out by Krata, the current appraisal amounts to €11,611,775. The loan to be made to the developer is €5,000,000, which means a Loan to Value (LTV) on the current appraisal of 43.06% and a Loan to Value of 1st disposal of 38.46%.

Collateral Agent

The constitution, preservation, management, administration and, if applicable, execution, of the real estate mortgage rights on behalf of wecity investors will be in charge of 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 services and independent agent 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 a company external to wecity.

Cumplimiento del Reglamento (UE) 2020/1503 🇪🇺

Aviso de riesgo

Invertir en este proyecto de financiación participativa entraña riesgos, incluido el de pérdida parcial o total del dinero invertido. Su inversión no está cubierta por los sistemas de garantía de depósitos establecidos de conformidad con la Directiva 2014/49/UE del Parlamento Europeo y del Consejo (*). Su inversión no está cubierta por los sistemas de indemnización de los inversores establecidos de conformidad con la Directiva 97/9/CE del Parlamento Europeo y del Consejo (**). Es posible que no obtenga rendimiento alguno de su inversión. No se trata de un producto de ahorro y se recomienda no invertir más del 10 % de su patrimonio neto en proyectos de financiación participativa. Es posible que no pueda ceder los instrumentos de inversión cuando lo desee. Aun cuando pueda cederlos, podría sufrir pérdidas.  

Periodo de reflexión precontractual para inversores no experimentados

Los inversores no experimentados disponen de un periodo de reflexión de cuatro (4) días durante el cual pueden, en cualquier momento, revocar o desistir, en todo momento, de su oferta de inversión o de expresión de interés en la oferta de financiación participativa sin necesidad de justificar su decisión y sin incurrir en una sanción. El periodo de reflexión empieza en el momento en el que el inversor no experimentado potencial realiza una oferta de inversión o expresa su interés y expira transcurridos cuatro días naturales desde esa fecha. Para ejercer sus derechos de revocación, los Inversores podrán dirigir un correo electrónico a la siguiente dirección: reclamaciones@wecity.io, rellenando el campo “asunto” de dicho correo electrónico de la siguiente forma: “REVOCACIÓN – Nombre de la Oportunidad – Nombre y apellidos del Inversor”. En el caso de haber efectuado alguna aportación dineraria vinculada a la oferta de financiación, dicho importe le será restituido a la mayor brevedad posible al wallet que, como inversor/usuario de la Plataforma “WECITY” tenga abierto en la Entidad de Pagos “LEMONWAY”  

Riesgo de crédito 

El riesgo de crédito se define como la pérdida que puede producirse ante el incumplimiento de los pagos por parte de la contrapartida en una operación financiera. En este caso concreto, el riesgo de que el Promotor no abone el principal y/o intereses del Préstamo. 

Riesgo del sector Riesgos inherentes al sector específico. 

Dichos riesgos pueden ser causados, por ejemplo, por un cambio en las circunstancias macroeconómicas, una reducción de la demanda en el sector en el que opera el proyecto de financiación participativa y las dependencias en otros sectores. En todo caso el inversor debe tener presente que las condiciones económicas adversas o cambios coyunturales pueden conducir al debilitamiento de la capacidad del Promotor para cumplir con sus compromisos financieros en relación con el préstamo. 

Riesgo de incumplimiento 

El riesgo de que el promotor del proyecto pueda ser sometido a concurso de acreedores y otros sucesos que afecten al proyecto o al promotor del proyecto que resulten en la pérdida de la inversión para los inversores. Dichos riesgos pueden estar causados por una variedad de factores, incluyendo, sin limitación: cambio (grave) en las circunstancias macroeconómicas, mala gestión, falta de experiencia, fraude, que la financiación no encaje con el objeto social, fracaso en el lanzamiento del producto o falta de liquidez. En el caso de concurso del Promotor, los titulares de las créditos tendrán la consideración de créditos con privilegio especial, al estar garantizados mediante una garantía hipotecaria, conforme con la catalogación y orden de prelación de créditos establecida por el Real Decreto Legislativo 1/2020, de 5 de mayo, por el que se aprueba el texto refundido de la Ley Concursal (en adelante, la “Ley Concursal”), salvo aquellos importe que aplicación del artículo 272 de la Ley Concursal deban ser clasificados, bien como crédito ordinario, bien como crédito subordinado, según corresponda. 

Riesgo de rendimiento inferior o retrasado 

El riesgo de que el rendimiento sea inferior al esperado o que el proyecto incumpla el pago de capital o de intereses. 

Riesgo de iliquidez de la inversión 

El riesgo de que los inversores no puedan vender su inversión. No existe un mercado de negociación activo para el préstamo, por lo que es posible que el inversor no pueda encontrar a un tercero a quien ceder el préstamo. 

Otros riesgos 

Riesgos que están, entre otros, fuera del control del promotor del proyecto, como riesgos políticos o regulatorios.