NEW YORK – In a world of compressed cap rates and geopolitical volatility, finding a true structural arbitrage is rare. Yet, that is exactly what Manuel Tavarez and Nelson Tejada Jr., the partners behind New York-based Agallas Equities, are offering Gulf allocators: a $400 million bridge to the Dominican Republic.
We sat down with Tavarez, a former trustee for two New York City pension systems (totaling $118 billion in AUM), and Tejada to discuss why GCC capital should look past Latin America’s old reputation and why a Caribbean nation of 11 million might just be the next high-yield frontier.
Q: Gentlemen, let’s start with the big picture. Why the Dominican Republic, and why should Gulf family offices care?
Manuel Tavarez: Because the math has changed. Western real estate cap rates have compressed to 3-5 percent. The Dominican Republic offers a dollar-linked economy—eliminating currency risk—and a government that actively welcomes foreign capital under Law 16-95. We recorded $5.03 billion in FDI in 2025, up 11.3%.
For GCC principals sitting on dry powder searching for 18%+ IRRs without public market volatility, this is not an emerging market bet. It is a structural arbitrage. We’ve built the only bridge connecting Caribbean real assets directly to Gulf liquidity.
Q: You often mention your pension trustee background. How does that influence how you court Gulf capital?
Manuel Tavarez: Trust is the currency of cross-border capital. I sat on the other side of the table vetting managers and demanding transparency. We run Agallas Equities with those same institutional-grade controls. We are not selling a story; we are offering full fiduciary discipline. For GCC family offices wary of emerging markets, that governance framework is the entry ticket.
Nelson Tejada Jr.: And we pair that with on-ground reality. We maintain a full-time team in Santo Domingo. It’s one thing to look at a yield spreadsheet; it’s another to execute a PPP under Law 47-20. Our dual-market strategy—bridging the Northeast US and the DR—ensures we have the local relationships to de-risk these assets.
Q: The fund is targeting $400 million with projected IRRs of 18-23%. Where specifically is that yield coming from?
Nelson Tejada Jr.: It comes from three sectors where supply does not meet demand. First, tourism hospitality under the CONFOTUR Law, offering net yields of 8-12%. Second, logistics warehousing in free-trade zones yielding 9-11% caps. But the real differentiator—the one that excites our GCC partners—is sports-anchored infrastructure.
The Dominican Republic is a global powerhouse in baseball. We have millions of tourists visiting for golf and training camps, yet we lack modern indoor training domes and athlete housing villages.
Manuel Tavarez: When I stand on a field in San Pedro de Macorís and watch 15-year-old prospects train for the MLB, I see the same energy that built Aspire Zone in Doha. GCC investors understand that vision. We are developing mixed-use sports resorts—combining villas, retail, and academies—with lower land costs and higher projected usage rates than Dubai Sports City.
Q: Specifically for Gulf Capital—Sovereign funds from Qatar, KSA, and UAE—what is the technical appeal?
Manuel Tavarez: Low correlation, yield premium, and first-mover advantage. DR assets move with US tourism and nearshoring, not oil prices. You get a 300-500 basis point premium above developed markets. And right now, no dedicated GCC vehicle targets this space.
Crucially, we are structuring Sharia-compatible vehicles using Ijara (leasing) and Musharaka (partnership) models. Real estate, toll roads, and sports academies are inherently Halal. Qatar has a stated goal of diversifying into hospitality and sports. The DR offers a direct entry point at attractive valuations.
Q: What is the exit strategy? How long does a GCC investor need to lock up capital?
Nelson Tejada Jr.: We operate on a typical three-to-seven-year horizon, though infrastructure can run longer. Exits are pragmatic: secondary sales to regional players—think Mexican or Colombian infrastructure funds or US sports investment funds—or a future IPO of consolidated assets. Several DR operators have already listed locally.
Manuel Tavarez: But let me be clear: This is not for passive “set and forget” capital. It requires local knowledge and due diligence. But for those who take the time—specifically GCC allocators seeking yield and a first-mover edge in sports-backed real estate—the opportunity is real and overlooked.
Q: What is the immediate next step for the firm?
Nelson Tejada Jr.: We are closing the first tranche of the $400 million fund. Within 18 months, we will break ground on our first Dominican sports facility public-private partnership. The pipe is primed. Now we are inviting the right partners to walk through the door.
Manuel Tavarez: The next high-yield frontier is not a secret. It is simply waiting for the right capital.
About Agallas Equities
Agallas Equities is a New York-based real estate investment and development firm led by partners Manuel Tavarez and Nelson Tejada Jr., who bring nearly two decades of combined experience at leading financial institutions.
Specializing in real estate, hospitality, sports facilities, and retail, the firm combines market insight with a commitment to quality, sustainability, and community impact.
To learn more, visit www.agallasequities.com or contact contact@agaeq.com.
