Pre-opening | wecity finances €2,750,000 (Phase I) for the extension of a building into 5 homes on Calle Velázquez in Madrid, at 11% with mortgage collateral

29/07/2026 – ⏱ 3 min

This article is for informational purposes only and does not, under any circumstances, constitute investment advice or a recommendation.

The crowdfunding platform wecity, authorized by the CNMV and registered under number 9, is preparing a real estate investment opportunity in Madrid. The operation consists of granting a fixed-rate mortgage loan with a first-rank guarantee to the developer company Masterframe Builders S.L., intended for the cancellation of a debt and the construction of three new floors of a building at Calle Velázquez, 97, for the creation of 5 homes. Investors should keep in mind that any reference to return is inseparable from the corresponding risk, which is described below.

Financial Terms of the Operation

This loan corresponds to the first phase of a total loan structured in three phases (the next two, optional, of €2,000,000 each). Phase I amounts to €2,750,000, with a fixed annual interest rate of 11% and a total estimated return of 16.50%; this estimate is subject to investment risk and is not guaranteed. The term is 18 months (extendable by an additional 6 months), with a 6-month lock-up period and interest paid at maturity. Of this first phase, €2,490,660 is allocated to the cancellation of the debt and the rest to structuring costs and other expenses, while the capital of the next two phases will be allocated to the execution of the works. The minimum investment is €500 per user and the asset has an AA rating. The investors' exit is expected upon the sale of the homes.

Asset Description, Planning Progress and Commercial Traction

The asset is located at Calle Velázquez, 97, in Madrid, on a 437 m² plot that will have a built area of 920 m², where three new floors will be built for 5 homes. On the planning side, the project has held a building permit since March 2026. On the commercial side, 1 of the 5 units has been sold (20% of the development). The developer has contributed €2,287,088.50 in equity to date for the acquisition and will contribute an additional €300,000 on the signing day, placing its total contribution at €2,587,088.50, i.e. 27.71% of the total funds needed.

Mortgage Collateral and Coverage Ratios

The loan has a first-rank mortgage over the asset. According to the appraisal report by Savills, the current appraisal (ECO) amounts to €6,293,701.83, placing the LTV at 43.69%, while the Completed-Building Hypothesis (HET) appraisal amounts to €11,618,334.47, with an HET LTV of 58.10%. The constitution, management and, where applicable, enforcement of the collateral on behalf of investors is the responsibility of a Security Agent external to wecity, and the use of funds by the developer is monitored by an external firm, with the use of funds to be justified at each drawdown. It should be borne in mind that most of this first phase is allocated to the cancellation of a pre-existing debt, that marketing is at 20% and that repayment depends on the sale of the homes.

Developer

Masterframe Builders, S.L. is a Madrid-based company dedicated to construction, installations and the integral management of refurbishment and new-build projects, according to the information provided.

Investing in this crowdfunding project carries risks, including the partial or total loss of the invested capital. The investment is not covered by the deposit guarantee schemes established under Directive 2014/49/EU nor by the investor compensation schemes established under Directive 97/9/EC, and no return might be obtained. In compliance with Regulation (EU) 2020/1503 and Delegated Regulation (EU) 2024/358, it is recalled that non-experienced investors have a four-calendar-day pre-contractual reflection period during which they may revoke their investment offer at no cost and without justification. It is also warned that this is a participatory financing product —not a deposit or a guaranteed savings product—. This crowdfunding project is not supervised by the CNMV or the Bank of Spain beyond the platform's own authorization, and the information provided by the developer has not been reviewed by these institutions. Likewise, the invested capital is not covered by the deposit guarantee fund or the investor compensation scheme.

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