Any small and medium-sized company with an excellent track record, prestigious management, and a strong balance sheet can raise funds through Walliance to realize a real estate operation.
What projects do we consider?
We consider real estate projects potentially generating no lower profit than 10% gross on an annual basis in a timespan between 6 and 30 months. Generally, the operation's financial structure must also comply with the following criteria:
- Thirty percent to 50% of the project's financing needs can be covered by a credit institution;
- the entrepreneur must commit his/her own resources to finance 20% to 40% of the capital required by the project;
- approximately 30% of the capital needed to finance the project can be raised via the crowdfunding campaign launched through Walliance.
These parameters are to be considered as basic general criteria. Based on the peculiarities of each project, Walliance reserves the right to enforce more or less flexible constraints.
How and by whom are the projects selected?
Every real estate development initiative proposed within the Walliance portal undergoes a strict evaluation process by an internal committee. The committee works in subsequent stages:
A) Pre-evaluation Team: Walliance analysts assess the potential of the submitted project and make an initial screening. If the project appears to be of interest, then the preliminary phase relating to the actual selection procedure starts. Specifically, the Pre-Evaluation Team will check:
- the veracity of the information submitted by the entrepreneur during the registration phase, the correspondence between transmitted documents, and the public registers' records.
- lawfulness and full fairness of the entrepreneurial project and/or its implementation methods as envisaged by the Offeror.
- integrity of the CEOs of the Offeror company, as well as of the individual members and representatives of the entities with a "qualifying share" in the Offeror company.
B) Evaluation Committee: this committee performs the actual due diligence which, at its discretion, will decide whether or not to accept a new project within the portal. Without prejudice to this discretion, the analysis will specifically be based on the following elements:
- characteristics of the Offeror;
- characteristics of the project in all aspects, including economic sustainability and profitability;
- technical check and project check;
- verification of the consistency between the project and Walliance's portal objectives (i.e., by way of a non-limiting example: financial education with particular reference to investments through equity crowdfunding, innovation, environmental protection, and economic, cultural, ethical, and social positive impact on the territory);
- attractiveness of the project as a whole and/or of the Offeror's organizational model for potential Investors;
- adequacy and consistency of skills possessed by the Offeror's shareholders and administrators, by level of education and/or previous professional experience, with respect to the specific activity carried out and the project's complexity;
- as well as the skills of the entrepreneurial team that will be assigned to the project;
- the Offeror's ability to introduce new organizational and/or production solutions in the target market with respect to external market conditions;
- growth potential of the target market and related marketing strategies; competitive scenario with particular attention on the market positioning of the Offeror's business and operation;
- adequacy of the business plan with respect to the project and entrepreneurial ambition;
- financial and asset assessment of the project to verify the soundness of the assumptions used in drawing up the business plan.
How much funding can be reached through Walliance?
The amount that can be funded through a Walliance crowdfunding campaign spans between €500,000 and €8,000,000, depending on the European country in which the Offeror company is based.
What operating models are available to raise capital through Walliance?
The structure for developing a real estate project varies from time to time, based on the proposed project types. Currently, the types of corporate structures that are adopted by most of the Offerors on Walliance correspond to the following operating model:
- If it is an Equity Crowdfunding Campaign, an SPV (acronym for Special Purpose Vehicle or, in Italian, Vehicle Company or Special Purpose Vehicle) will be established. If the project is developed in Europe, the SPV can develop the real estate project itself or can finance a company that already owns the real estate. If the project is developed outside the European Union, the SPV becomes the owner of a foreign company that develops the real estate project.
- If the Campaign achieves the minimum target, then the INSC (increase in share capital) of the company developing the operation is finalized.
- At the conclusion of the real estate transaction, the profit that is generated for the SPV is collected by the latter and then distributed among all the shareholders, on a pro-rata basis, as determined by the terms of the Offer.
- If it is a Debt crowdfunding campaign that reaches the minimum target, the Company will issue the bonds to be subscribed by the investors.
In the case of a Debt crowdfunding campaign, investors will receive from the Company the interest accrued on the sums invested through the Campaign, according to the terms of the Offer, and, at the conclusion of the real estate transaction, the Company will return to the investors the capital invested.
The project must be clearly and exhaustively displayed, following instructions on the site's "Collect" section where you can send us all required documentation. The documents needed for the presentation of the project are:
- Chamber of commerce business register file search;
- Articles of association of the Offeror company;
- Self declaration of no criminal records (Download);
- CV of the Offeror company's legal representative;
- Business Plan;
- Presentation of the Offeror company;
- Financial Plan.