Pre-opening | Wecity Opens the €1,400,000 Phase I to Refurbish a 17-Apartment Building in Busto Arsizio (Italy)

23/09/2026 – ⏱ 3 min

This article is for informational purposes only and does not constitute investment advice or a recommendation of any kind.

Wecity, authorised by the CNMV under registration number 9, is preparing Phase I of a mortgage loan to Tea Real Estate S.r.l. to refurbish a building at Via Giordano Bruno 9-11 in Busto Arsizio (Varese), north-west of Milan, where 17 apartments and 21 parking spaces will be created. It should be remembered that any reference to return is inseparable from the corresponding risk, which is set out below.

This phase amounts to €1,400,000 within a total loan of €3,000,000 in three phases. The rate is fixed at 11% per annum, over 18 months extendable by six, with a six-month lock-up and interest paid at maturity; the platform puts the total estimated return at 16.50%, an estimate subject to investment risk and not guaranteed. The minimum investment is €500 and the internal rating AA, the platform's own assessment which, as it warns, is not comparable to that of rating agencies and does not replace the investor's own analysis. No opening date is stated.

Asset description, construction progress and sales traction

The building has 2,115 sqm of built area and the permit was obtained in April this year. Works progress stands at 22%, and the file itself states that marketing will not start until the developer has resumed works, wording that suggests construction is halted. No unit has been sold or reserved, and repayment depends entirely on those future sales.

Financial structure, coverage ratios and security

The security is a first-ranking mortgage over the asset, although that mention carries a footnote marker whose text does not appear in the fact sheet, and the security agent section refers to a pledge: two points to check against the contract.

According to RYZE, the current value is €1,808,000 and the completed-building value €6,790,000. The fact sheet attributes an LTV on completed value of 44.18% to the €1,400,000 loan, but that ratio corresponds to the total €3,000,000 loan: the €1,400,000 of this phase equals 20.6% of the completed value. The first-drawdown LTV of 10.51% is indeed calculated on the €190,000 of the first drawdown.

The developer has contributed €1,790,000 of its own funds for the acquisition, the permits and the start of works. The fact sheet presents this as 33.2% of the funds required, a percentage that only adds up against the €5,390,000 of the complete project, combining the total loan and €600,000 from other investors whose nature and ranking are not detailed. Tea Real Estate has operated since 2019 between Varese and Novara, first in buying, splitting and reselling properties and later in larger refurbishments; the file does not quantify units delivered nor record previous operations with the platform. An external company monitors the use of funds, which are held in a Lemonway escrow account and released upon verification. Wecity charges the developer a success fee of 4.50% plus VAT.

Non-sophisticated investors have a four-calendar-day pre-contractual reflection period to revoke their offer without penalty. This is a crowdfunding product, not a deposit or a guaranteed savings product; the platform recommends allocating no more than 10% of net worth to such projects. It carries risks of illiquidity and of total or partial loss of principal. It is not supervised by the CNMV or the Bank of Spain, and has no cover under Directives 2014/49/EU and 97/9/EC. Investors may not recover the capital contributed.

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Your real estate crowdfunding, in one app.

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The Realty Investor beta is now available. Explore the market, discover new projects and get to know the platform with simulated money, without putting in any capital.

Download the beta and start discovering a new way to manage your real estate investments.