International proptech
Introduction
wecity trademark of CITYPRIVE PFP S. L., is a Participatory Financing Platform (PFP) or real estate crowdfunding authorized by the National Securities Market Commission (CNMV), registered with registration number 30. It belongs to the technological and innovative ecosystem where promoters and investors communicate, finance and make their investments profitable.
Model
wecity is based on fundraising, also called collective financing or crowdfunding.
Wecity's activity, according to the law, "consists of putting in contact a plurality of natural or legal persons who offer financing in exchange for a monetary return, called investors, with natural or legal persons who request financing in their own name to allocate it to a participatory financing project, called promoters." Its main function is, therefore, to democratize access to the high returns of the institutional real estate market, so that developers and investors can communicate to finance themselves and make their investments profitable in a new technological and innovative ecosystem. It is a collaborative investment,[1] since a single project can have the contribution, greater or lesser, of many users of the platform.
Its activity is national according to its current license, although it is expected that at the end of 2021, with the entry into force of the European passport, projects can be carried out in the rest of the countries of the European Union.
Both the developers and the investors are clients of wecity, and both are in constant contact. Compared to traditional financing, promoters manage to build a client portfolio for the present and the future, while investors gain transparency and security. The CITYPRIVE investor network is made up of individual, accredited and non-accredited investors.
wecity works with the equity or capital increase modality, that is, with real estate projects in which investors become part of the capital stock of the company that leads the project as partners. The number of shares they have is proportional to the investment they have made. The projects are selected by a committee of experts among the best locations in Spanish cities: residential buildings, commercial premises, hotels and even large stores. The platform finances both the purchase of land and the construction and renovations.
Each project has a technical sheet. Users can access through the website, register and open an account to create their own portfolio and follow their investments (the evolution of their projects and the market) in real time in their private control area. Users can also participate in several projects at the same time if their desire is to diversify—and not concentrate—their investments. The opportunities in which users can invest are of two types: income and capital gains. The average profitability of the projects was, in their first year, 16.31%.