Pre-opening | wecity finances €2,750,000 (Phase I) for the debt cancellation and refurbishment of an 18-home building on Calle Santa Isabel in Madrid

24/07/2026 – ⏱ 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 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 Veltrion Investment SL, intended for the cancellation of an existing debt and the refurbishment of a building located at Calle Santa Isabel, 18, where 18 homes and 2 commercial units will be developed. 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

The total loan amounts to €4,500,000, divided into three phases (€2,750,000, €1,000,000 and €750,000), with a fixed annual interest rate of 10.75% and a total estimated return of 8.06%; this estimate is subject to investment risk and is not guaranteed. The ordinary term is 9 months, extendable by an additional 3 months, with a 6-month lock-up period and interest paid at maturity. The minimum investment is €500 per user. This call corresponds to Phase I, of €2,750,000, of which €2,518,409 is allocated to the cancellation of the existing debt and the rest to the loan structuring costs and other expenses; the capital of the two subsequent phases will be allocated to the execution of the works. Repayment of the loan is expected upon the entry of bank financing once the asset has begun to generate rental income.

Asset Description, Planning Situation and Strategy

The asset is a building located at Calle Santa Isabel, 18, in the center of Madrid, close to Puerta del Sol, the Barrio de las Letras and Lavapiés, with a total built area of 1,002 m² on a 321 m² plot. The project contemplates the refurbishment of the property for 18 homes and 2 commercial units. On the commercial side, there are no units sold (0 of 18), as the developer intends to retain the asset to operate it for income, allocating the homes to medium-term rental. It should be noted that, as this is a hold strategy with no planned sales, repayment does not depend on the marketing of the homes but on the entry of bank financing once the asset generates rental income, which introduces dependence on the asset being brought into operation and on the refinancing.

Capital Structure, Coverage Ratios and Collateral

The developer has contributed €2,287,088.50 in equity for the acquisition and will contribute an additional €300,000 on the day of signing, placing its total contribution at around 36.50% of the funds required for the development of the project. According to the appraisal report prepared by Savills, the current appraisal (ECO) of the asset amounts to €4,527,503.43 and the appraisal under the Completed Building Hypothesis (HET) to €7,819,208.40; against these figures, the loan of this Phase I (€2,750,000) implies a current LTV of 60.74% and an LTV on the HET of 57.55%. The collateral of the operation is a first-rank mortgage over the asset located at Calle Santa Isabel, 18. 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. The project is promoted by Veltrion Investment SL, a company managed by Jamison Group, an international group specialized in development, asset management and real estate investment with Build-to-Rent, Flex Living and tourist-use strategies.

In compliance with the European Crowdfunding Regulation (EU) 2020/1503, 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— and that real estate investments carry specific risks, such as illiquidity, the risk of not obtaining the expected return, or the partial or total loss of principal. This crowdfunding project is not supervised by the CNMV or the Bank of Spain, and the information provided 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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