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 a favorable proposal from the Bank of Spain.

Investor, before making your investment, please read the basic information for the investor client, as well as the pre-contractual reflection period for inexperienced investors.

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, it is hereby informed 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 Grupo Marein 73, S.L, requests financing through WECITY for the cancellation of a mortgage loan in the amount of 211,146 € and to defray the costs of execution of work for the development of a luxury villa located at Calle de Cefeo, 4, in the urbanization Los Naranjos, Marbella.

The plot has an area of 1.149 m²on which will be built a single-family house with a built area of 454,70^{m2 .} The project has a building license for the development of a 4-bedroom house with garage, swimming pool and large garden and leisure areas. Currently, the property has not been marketed.

The project will be financed through a mortgage loan in the amount of 700,000 € at a fixed rate, which will have a 1st degree mortgage guarantee. This loan will be for Phase I of a total loan, which may amount to a maximum of €1,700,000 in three phases.

647,538 (48.05%), which has been used for the acquisition of the land, technical and legal expenses and fees.

It is estimated that the repayment of the loan to the wecity investors will take place with the sale and delivery of the property to the end buyer.

The project

Location and environment

The area of Los Naranjos in Marbella is one of the most exclusive and sought after areas of the Costa del Sol, ideal for those looking for luxury properties and tranquility. Located near the Los Naranjos Golf course, this area offers a quiet residential environment, surrounded by nature and with quick access to first class services.

In addition, Los Naranjos is well connected to the center of Marbella and the famous Puerto Banus, with a great social life, high-end stores and luxury restaurants. The combination of privacy, luxury and proximity to services makes this area an excellent choice for both living and real estate investment.

Mortgage collateral and appraisal

The loan will be secured by a^1st degree mortgage on the asset located at 4, Calle Cefeo, Los Naranjos (Marbella).

According to the appraisal report made by TINSA, the current appraisal amounts to € 1,252,512.12 and the HET appraisal amounts to € 3,207,894.86. The loan to be made to the developer is 700,000 €, which means a Loan to Value (LTV) on current appraisal of 55.88%, a Loan to Value (LTV) on Completed Building Assumption (HET) of 52.99% and a Loan to Value (LTV) on first drawdown of 30.71%.

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 entity external 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.

Rating

wecity, as a provider of crowdfunding services and in compliance with Delegated Regulation (EU) 2024/358 supplementing Regulation (EU) 2020/1503 of the European Parliament and of the Council, provides a description of the method of credit rating
of the projects used to calculate the ratings. If the calculation is based on accounts that have not been audited, this shall be clearly stated in the description of the method.

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.

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 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.io, 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 in 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.