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.
A.R.G Reformas Granadinas 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 opportunity consists of financing the acquisition costs of a luxury villa for its rehabilitation and subsequent sale. The asset is located in Avenida Manolete, 528, Nueva Andalucía, Marbella. The property has a buildable area of 252m2 and a constructed area of 348m2 on a plot of 840m2 with large gardens and swimming pool. The rehabilitation costs will be assumed entirely by the developer of the project. The commercialization will begin when the works are already well advanced.
The project will be financed through a fixed-rate loan with a 1st degree mortgage guarantee for an amount of €1,200,000, which will be used for the purchase and sale of the asset.
The promoter provides its own funds for an amount of €700,000 (37%) which, together with the €1,200,000 requested from wecity’s investors, make a total of €1,900,000 necessary for the acquisition of the asset and payment of technical expenses.
Through wecity you can participate in a fixed-rate loan operation with an annual interest rate of 11% for an estimated term of 12 months (6 months mandatory) with the possibility of an extension of 3 additional months.
The exit of the investors occurs with the sale and delivery of the property to the buyer.
The payment of interest + the return of the invested capital will be madeat maturity.
With a minimum investment of 500 €, you can participate in this opportunity with an excellent profitability and with the maximum guarantees. The estimated total return is 11% for 12 months or 13.75% if the final term is with the 3-month extension.
Keys Investment
- Purpose of the loan: Purchase of a property located at Avenida Manolete, 528, Nueva Andalucia, Marbella.
- Guarantee:1st degree mortgage.
- Term: 12 months (+3 months optional extension).
- Interest rate: 11% per annum.
- Estimated total yield: 11%.
- Interest payment: at maturity
- ECO appraisal: €2,183,796 (current LTV: 54.95%).
- Contributions:
- Wecity loan: €1,200,000.
- Developer’s equity: €700,000 (37%).
- Minimum investment: €500.
- Maximum investment: No investment limits
ECO Valuation
The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €2,183,796. This represents a Loan to Value (LTV) over the current appraisal of 54.95%.
The independent appraiser in charge of identifying the value is VALUM, whose corporate name is Instituto de Valoraciones SA, and which is registered as an Approved Appraisal Company by the Bank of Spain under number 4498.
The Project
Location
Located in the heart of Marbella, Aldea Blanca offers an unparalleled connection to the attractions of the Costa del Sol, as well as a harmonious environment surrounded by lush Mediterranean landscapes. Meticulously designed gardens, landscaped pathways and architecture integrated with the surroundings create an oasis of serenity that invites residents to enjoy the tranquility and beauty of their surroundings.
It is located just a few minutes drive from Puerto Banus, the prestigious and exclusive marina. This proximity adds an exclusive touch to the lifestyle that Nueva Andalucía offers, allowing residents to immerse themselves in the sophistication of this iconic Marbella destination.
Mortgage Guarantee
The loan will be secured by a1st degree mortgage on the asset and the building, located at Avenida Manolete, 528, Nueva Andalucía, Marbella.
According to the appraisal report made by Valum, the current appraisal amounts to €2,183,796. The loan to be made to the developer is €1,200,000, which means a Loan to Value (LTV) over the current appraisal of 54.95%.
Collateral agent
The constitution, preservation, management, administration and, if applicable, enforcement of the real estate mortgage rights on behalf of wecity investors will be carried out by an external entity to wecity.
The Collateral Agent chosen for this project is Ceiba Global Alternative Investments SL, a company dedicated to the provision of fiduciary services by contract or mandate”.
Ceiba Global is a company owned by Ceiba Legal SL, a law firm specialized in alternative financing that provides services to several investment vehicles.
In 2023, Ceiba Legal provided legal advisory services amounting to €150,000,000, formalizing and structuring more than €60,000,000 in alternative financing transactions.
At present, it is one of the most recognized firms in the Spanish market in the structuring of secured debt transactions.
Additionally, Ceiba provides legal advice to wecity throughout the life of the loan, from structuring to foreclosure.
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.
