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.

Edificio Mosen Febrer 18 Coop.V, 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 investment opportunity consists of financing the acquisition of a plot of land located at 18, Mosén Febrer Street, Valencia, in the Creu Coberta neighborhood. The plot has an area of 538 m2 and a buildable area above ground of 2,534 m2, on which the development of a building of 18 homes, 7 tourist apartments, with 20 parking spaces and 18 storage rooms will be developed. Currently, the marketing level is 92% (23 out of 25 documented reservations). The developer applied for the license in January 2024. The project is being developed as a cooperative, with Valorae Cooperativas as the project manager.

The project will be financed through a fixed-rate mortgage loan of €550,000 with a 1st degree mortgage guarantee.

The cooperative members (Edificio Mosen Febrer 18 Coop.V) are providing their own funds in the amount of 444,906 € (44.72%), which together with the 550,000 € requested from the wecity investors makes a total amount of 994,906 € necessary for the acquisition of the land.

The repayment of the loan to the wecity investors will take place with the entry of the developer loan, once the building permit is obtained.

The repayment of the loan to wecity investors will occur with the entry of the developer loan, once the building permit is obtained.

Through wecity you can participate in a fixed rate loan operation with an annual interest rate of 11% in an estimated term of 6 months (6 months of obligatory compliance) with a possibility of extension of 3 additional months. The total estimated return is 5.5% for 6 months or 8.25% if the final term is 9 months with the extension. The interest payment + the return of the invested capital will be made at maturity.

With a minimum investment of 500 €, you can participate in this opportunity with an excellent profitability and with maximum guarantees.

ECO Appraisal and Mortgage Guarantee

The loan will be secured by a 1st degree mortgage on the plot of land located at 18, Mosén Febrer Street, Valencia.

The current appraisal for mortgage guarantee purposes (Order ECO 805/2003) amounts to 1,278,405 €. This means a Loan to Value (LTV) over the current appraisal of 43.02%. The independent appraisal company in charge of identifying the value is SOCIEDAD DE TASACIÓN, whose corporate name is Sociedad de Tasación SA, and which is registered as an approved appraisal company by the Bank of Spain under number 4301.

The project

Location

Valencia, on the Costa del Azahar, is the third largest city in the country. Known for its rich history, Valencia perfectly combines the ancient and the modern. Its urban environment, with the City of Arts and Sciences and Mediterranean beaches such as Malvarrosa or El Saler attracts those seeking a luxurious and relaxed lifestyle.

Valencia has renowned educational centers such as the German School and Caxton College, and outstanding health services such as the Hospital Clínico Universitario and Hospital Quirónsalud.

The wide gastronomic and leisure offer, together with recreational activities such as sailing in the Marina Real and golf at clubs such as the Escorpión Golf Club, complement its attractive Mediterranean lifestyle.

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.

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.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.