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.

Villa Lipto SL requests financing from wecity for this investment opportunity, which consists of Phase II of the construction of a luxury Villa located at Calle las Adelfas 70 in San Pedro de Alcántara, Marbella (Málaga).

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

Project Summary

Villa Lipto SL is offering you the opportunity to participate in a Fixed Rate Loan with a 1st Degree Mortgage Guarantee.

The project involves financing Phase II of the construction of a luxurious villa in Marbella (Malaga) for an amount of €500,000. wecity successfully financed Phase I of the project. The plot of land has a total area of 597.56 m2.

The villa will have a total built area of 428.46 m2, with 211.55 m2 allocated to the two above-ground floors and 216.91 m2 to a below-ground floor with three parking spaces.

The developer provides the land, which is owned and comes with a building permit. The developer is responsible for the execution of the project, which is currently at 22% completion. Phase II is expected to take 12 months to complete.

The funding goal for Phase II is €500,000, which, when combined with the €600,000 from Phase I, reaches the maximum established amount of €1,100,000. Through wecity, you have the opportunity to participate in a fixed-rate loan operation with an annual interest rate of 9.00% and an estimated duration of 12 months. The estimated total profit after taxes is 9%. Interest payments will be made upon maturity, which is at the end of the 12-month period.

Furthermore, an external company will monitor the use of funds based on the progress of the construction work, as certified by them.

With a minimum investment of €500 and no investment limit, you can take part in this opportunity that offers excellent profitability and maximum guarantees.

If you invest €100,000, you will have an estimated total profit of €9,000”

Valuation and Rating

The valuation based on the Hypothetical End Building amounts to €1,974,035.19, which represents a Loan To Value (LTV) based on the Hypothetical End Building of 55.72%.

An external Rating has been requested for the project from the consulting firm JLL, which has awarded it a AA rating.

Project

The project involves the construction of a luxury villa for residential use, with a total area of 428.46 m2. This includes 211.55 m2 for the two above-ground floors and 216.91 m2 for a below-ground floor with three parking spaces.

Planos

Visualización 3D

Areas and Location

The project is located at Las Adelfas 70 street, in San Pedro de Alcántara, a town within the municipality of Marbella, Málaga.

This residential area is situated in the heart of the Costa del Sol and offers a wide range of shops, services, and leisure facilities. It also benefits from easy access via the Mediterranean highway.

The development is just a few meters away from the Guadalmina urbanization and its golf club, which is renowned as one of the most refined and pleasant residential areas in Marbella. Additionally, it is only 5 km away from the prestigious Puerto Banús.

Collateral

The loan will have a first-range mortgage guarantee on the land and the construction of the project located at Las Adelfas 70 street, San Pedro de Alcántara, Marbella, Málaga.

The independent valuation company responsible for determining the value of the land is ATV VALOR.

According to the appraisal report conducted by ATV VALOR as of December 2, 2022, the valuation of the mortgaged land amounts to €850,043.22, and the valuation based on the hypothetical end building is €1,974,035.19. Therefore, this represents a Loan to Value based on the hypothetical end building of 55.72%.

Security Agent

The establishment, preservation, management, administration, and, if necessary, execution of the real estate mortgage rights on behalf of the investors will be handled by an external entity to wecity.

In this case, the designated Guarantors Agent is BONDHOLDERS.

BONDHOLDERS is a professional company specialized in providing trustee and independent agent services for various asset classes and under numerous international jurisdictions.

In recent years, BONDHOLDERS has been appointed as agent and trustee in over 400 transactions, representing a total debt of nearly €200 billion.

Among their main clients are financial institutions, institutional clients, asset managers, and sovereign government agencies, among others.

They are currently one of the leaders in Europe in providing independent fiduciary services

  

Monitoring

The developer will be required to provide justification for the use of funds for each requested disbursement.

The utilization of funds by the developer will be monitored by an external company, separate from wecity. The release of funds will be based on the percentage of construction progress as certified by the monitoring company.

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.