Wecity Launches Real Estate Crowdfunding in Portugal

Wecity launches real estate crowdfunding in Portugal. The digital crowdfunding platform is betting on a project on the outskirts of Lisbon, to carry out the development of a logistics warehouse.

Wecity acts as an intermediary between the developer and the investor, offering attractive investment opportunities for retail investors in a sector traditionally reserved for high-net-worth individuals. Wecity’s investment director, Ignacio García, gives a preview of the keys to this investment.

Read more about Wecity real estate crowdfunding for a real estate project in Portugal, and fidn the most important financial news of the day with the Born2Invest mobile app.

The investment

The sponsor owns an industrial building that will be demolished for the development of a logistics warehouse of more than 21,270 m2 located at Estrada das Ligeiras no 21-27, Cacém-Sintra, in the metropolitan area of Lisbon. In addition, last July, it signed a Promissory Purchase Agreement with one of the world’s largest real estate investment funds for the sale of the asset for an amount of €6 million.

The transaction is conditioned to the fulfillment of two real estate milestones. On the one hand, the issuance of the Final Approval of the Plotting License by the Chamber of Sintra. On the other hand, the resolution and approval of the Portuguese Environmental Agency (APA). Also, the developer has an environmental report from 2016 in which no indications of contamination were found.

In parallel, Wecity has initiated legal and urban due diligence to confirm all this information. In addition, the owner is requesting a bridging loan from Wecity in the amount of €2.3 million at a fixed rate with a 1st degree mortgage guarantee. The objective is to cancel a mortgage debt of €1.35 million and to cover the expenses associated with the management of the project until the requirements established for the purchase and sale are met.

Wecity and Lisbon Logistics Market

In recent years, the logistics market is the real estate sector that has experienced the greatest growth at the international level. The development of e-commerce has led to a continuous and growing demand for logistics space, which has resulted in an increase in rents and a contraction in yields.

In the Portuguese market, this problem is worsening. The current supply, which is almost non-existent, is unable to meet the strong demand for logistics space in the area. Nor are major developments expected to increase supply. As a result, we find ourselves in a scenario of strong growth in rents (4.5% year-on-year), and a contraction in yields. As well as an occupancy ratio of 98.4% for this asset class.

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(Featured image by Taisia Karaseva via Unsplash)

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First published in radio intereconomia. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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