NEW YORK – Trust is the currency of cross-border capital. And for Manuel Tavarez, Managing Partner of Agallas Equities, trust begins where most real estate fund managers never think to look: pension fund governance.
Before co-founding the New York‑based real estate investment firm, Tavarez served as a trustee for two New York City pension systems that together managed $118 billion in assets. That experience – sitting on the other side of the table, vetting managers, demanding transparency, and enforcing fiduciary discipline – now defines how Agallas Equities courts capital from the Gulf Cooperation Council.
“GCC family offices and sovereign funds have spent decades perfecting global diversification – but Latin America has too often been an afterthought,” Tavarez said. “The Dominican Republic offers dollar‑denominated returns, political stability, and a government that actively welcomes foreign capital.
For investors sitting on dry powder and searching for 18%+ IRRs without the volatility of public markets, this is not an emerging market bet – it’s a structural arbitrage. And we’ve built the only bridge that connects Caribbean real assets directly to Gulf liquidity.”
That bridge is a $400 million fund, and Agallas Equities is now closing its first tranche. Within 18 months, the firm expects to break ground on its first Dominican sports facility public‑private partnership (PPP).
Why the Dominican Republic?
The numbers, Tavarez argues, speak for themselves. The Dominican Republic recorded $5.03 billion in foreign direct investment in 2025 – up 11.3% from the previous year – with real estate accounting for 15.7% of that total. The country’s CONFOTUR Law offers significant tax exemptions for tourism projects, and its dollar‑linked economy removes the currency risk that often deters international investors.
“Western real estate cap rates have compressed to 3–5%,” Tavarez wrote in a recent Gulf Times op‑ed. “The DR offers a compelling alternative.”
Tourism‑focused real estate in the DR regularly delivers net yields of 8–12%, while infrastructure concessions can generate internal rates of return above 15%. For comparison, logistics warehousing in Santo Domingo’s free‑trade zones yields cap rates of 9–11%, and urban residential in Santo Domingo and Santiago offers 7–9% – all backed by a legal framework (Law 16‑95) that guarantees foreign investors the same rights as locals, free capital repatriation, and access to international arbitration.
The Sports Frontier: Where GCC Investors See a Familiar Vision
While real estate and infrastructure provide the foundation, Agallas Equities is betting that sports‑anchored assets will be the true differentiator for Gulf allocators. The Dominican Republic is a global powerhouse in baseball and boxing, and it is rapidly growing its appeal for other Olympic sports.
Millions of tourists visit annually for golf, fishing, and training camps – yet the country lacks indoor training domes, athlete housing villages, and multi‑sport stadiums. That gap creates a direct parallel to the Gulf’s own success stories.
“When I stand on a field in San Pedro de Macorís and watch 15‑year‑old prospects train for MLB, I see the same energy and ambition that built Aspire Zone in Doha,” Tavarez said. “GCC investors understand that vision. We are not selling risk – we are sharing an opportunity to be first through the door.”
Agallas Equities is now developing a pipeline of mixed‑use sports resorts that combine residential villas, retail, baseball academies, and athlete lodging on a single campus. For GCC investors familiar with Dubai Sports City or Qatar’s Aspire Academy, the model is recognizable – but with lower land costs, higher projected usage rates, and significantly less competition.
Why Gulf Capital? Low Correlation, High Yield, and Sharia‑Compatible Structures
According to an internal memorandum from Agallas Equities, the Dominican Republic is not on the radar of most GCC sovereign funds or major family offices – which is precisely the point.
- Low correlation: DR assets move with US tourism and nearshoring trends, not with oil prices or GCC interest rates.
- Yield premium: 300–500 basis points above comparable risk‑adjusted assets in developed markets.
- First‑mover advantage: No dedicated GCC vehicle currently targets DR real estate, infrastructure, or sports.
Crucially, the firm is actively structuring Sharia‑compatible investment vehicles using Ijara (leasing) and Musharaka (partnership) models, allowing passive ownership of income‑generating assets without interest. Real estate, toll roads, airports, and sports academies are inherently Halal.
“Qatar, in particular, has a stated goal of diversifying its foreign holdings into hospitality, logistics, and sports,” the memorandum notes. “The DR offers a direct entry point at attractive valuations – and currently no dedicated GCC player dominates this space.”
Governance and Exit Pathways
For investors wary of emerging markets, Tavarez emphasizes that Agallas Equities operates with institutional‑grade controls drawn directly from his pension‑trustee background. The firm maintains a full‑time team in Santo Domingo with deep on‑ground relationships. PPP contracts follow Law 47‑20, which includes stabilization clauses and allows dispute resolution through international arbitration.
Exit pathways are equally pragmatic: secondary sales to regional players (Mexican or Colombian infrastructure funds, US sports investment funds) or a future IPO of consolidated assets. Several DR real estate operators have already listed locally.
“The Dominican Republic is not for investors who want to set and forget,” Tavarez acknowledged. “It requires local knowledge, patient capital, and real due diligence. But for those who take the time – especially GCC allocators seeking yield, diversification, and a first‑mover edge in sports‑backed real estate – the opportunity is real, and it is overlooked.”
The Bottom Line
With a $400 million fund, a clear 18‑month construction timeline, and projected net IRRs of 18–23% on its sports infrastructure pipeline, Agallas Equities is positioning itself as the only specialized bridge between Gulf liquidity and Caribbean real assets.
As Tavarez put it: “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 with expertise in investments, development, and cross‑border execution.
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.
