Valencia-La Cañada II

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.

Princeps Score Promociones 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 investment opportunity consists of financing PHASE II of the “Valencia-La Cañada” project by means of a €700,000 fixed-rate loan with a first mortgage guarantee. With the activation of this phase, the outstanding amount of the loan reaches a volume of 1,400,000 € and may be increased up to a maximum of 2,000,000 €.

Located at Calle Treinta, 28-32, Urbanización La Cañada, Paterna, Valencia. The 510 m² plot has an approximate buildable area of 2,411 m². The project has a building permit for a development of 18 one-, two- and three-bedroom homes, with garage, storage rooms and large terraces.

The purpose of the loan is to continue defraying the construction costs until the homes are delivered to the buyers, once the first occupancy license is obtained. At present, the construction progress is 7.81%, and the building structure is being executed. At the commercial level, 7 private sale and purchase contracts have already been formalized and there are 2 documented reservations, which means that 50% of pre-sales have been completed (9 out of 18). With respect to the previous phase, there has been one new sale.

The developer has contributed equity of €700,000 which, together with the €1,400,000 (phase I and phase II) requested from wecity investors, makes a total of €2,100,000 necessary to continue with the works.

Regarding risks and guarantees, the loan will have a first drawdown LTV of 60%. The developer still has available in its wallet €234,000 corresponding to phase I (total phase I: €700,000), which will be released as agreed in the drawdown schedule and as the expected degree of progress is reached. The promoter is activating this phase II in order to anticipate the summer period (July and August) and thus provide the project at all times with the necessary financing for its proper development”.

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

ECO Appraisal

The current appraisal for mortgage guarantee purposes (ECO Order 805/2003) amounts to €904,651 . This represents a Loan to Value (LTV) over the current appraisal of 154%. The appraisal is for January 2024, so it does not take into account the work progress that has been made.

The appraisal on the assumption of a completed building amounts to €4,244,021. This represents a Loan to Value (LTV) on HET appraisal of 47.13%.

The Loan to Value (LTV) on first disposal is 60%.

The independent appraiser in charge of identifying the value is EUROVAL, whose corporate name is EUROVALORACIONES SA, and which is registered as an Approved Appraisal Company by the Bank of Spain under number 4388.

The project

The project consists of 18 multi-family dwellings with garage, storage room and large terraces, located at calle Treinta, 28-32, urbanization La Cañada, Paterna (Valencia).

Ground Floor and Elevations to Calle 25 and Calle 30 (you can see the rest of the plans in the Documents section).

Location

La Cañada is an urbanization located in the northwest of the municipality of Valencia, just 10 kilometers from the city center. It offers a strategic location, allowing its inhabitants to enjoy a safe and quiet environment just minutes from the city.

La Cañada stands out for its serene environment surrounded by nature. The development is integrated in a green landscape with large wooded areas, which provides residents with a quiet and peaceful environment with all kinds of services.

In addition, it has easy and quick access to main roads and bus services, the commuter network provides efficient options for commuting to Valencia and surrounding areas, facilitating the mobility of residents.

La garantía hipotecaria

The loan will be secured by a 1st degree mortgage on the building and the construction, located at calle Treinta, 28-32, urbanization La Cañada, Paterna (Valencia).

According to the appraisal report made by EUROVAL, the current appraisal amounts to €904,651. The loan to be made to the developer is 700,000 €, which together with the 700,000 € of Phase I, amounts to 1,400,000 €. This means a Loan to Value (LTV) on current appraisal of 154% and a Loan to Value of 1st disposition of 60%. The appraisal is dated January 2024 and does not take into account the revaluation of the asset due to the work progress made.

The HET appraisal (Assumed Completed Building) amounts to €4,244,021, which represents a Loan to Value HET of 47.13%.

Guarantee 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.

In this case the appointed Collateral Agent is BONDHOLDERS.

Bondholders, is a professional company specialized mainly in providing independent 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.

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.