Institutional Capital in Costa Rica

Grupo GAP invites fund managers, pension and retirement funds, family offices and other institutional investors from around the world to put capital to work in Costa Rica real estate lending. We find, check, document and manage short-term loans secured by Costa Rica property. Our partners provide the capital. GAP does the work on the ground.

If your fund is looking for steady income that does not rise and fall with the stock market, backed by real property, we would like to talk with you.

Why institutional capital should look at Costa Rica property lending

• Income from contracts, not markets. Returns come from the fixed interest written into each loan agreement, not from share prices.
• Every loan is secured by real estate. Each loan is backed by a mortgage registered against the property in Costa Rica’s National Registry.
• Conservative leverage. GAP lends up to 50% of a property’s value, so every loan has a large equity cushion.
• Short terms. Loans run from 6 months to 3 years, so capital comes back and can be put to work again regularly.
• Steady demand. Many foreign buyers and local owners find it hard to get fast bank financing in Costa Rica. GAP fills that gap, for home purchases, land, construction and commercial property.

What the returns look like

Private lenders who fund GAP loans have typically earned between 9% and 16% a year, depending on the property, the loan-to-value and the borrower. Lower rates generally go with stronger collateral and more conservative loans.

For institutional partners, the return, fees and reporting are agreed for each mandate. No investment is free of risk, and we explain the risks as clearly as the returns. That is how long-term partnerships are built.

Who we want to work with

• Fund managers and asset managers looking for private credit backed by real assets
• Pension and retirement funds seeking steady, income-producing investments
• Family offices that want exposure to Costa Rica without running the loans themselves
• Private credit funds, insurers and other institutions that want to diversify away from public markets

Picture a partner that commits US$100 million and asks GAP to place it across many carefully chosen loans on homes, land and commercial property, each one secured and fully documented. That is the kind of relationship we are building, and we are ready for mandates of that size.

How a partnership works

1. Introduction. A first call about your mandate: size, target return, time frame and reporting needs.
2. Due diligence. We walk you through our lending process, loan documents and underwriting standards.
3. Structure. Together we agree the facility, the return, fees, limits per loan and how reporting works.
4. Deployment. GAP sources and checks each loan. Title and liens are reviewed, the property is valued, attorneys prepare the documents and the mortgage is registered.
5. Servicing and reporting. GAP collects payments, follows each loan through to repayment and reports to you as agreed.

How the capital is protected

Every loan starts with the property. Title, existing liens, value and loan-to-value are reviewed before any money moves, using the same attorneys and process GAP has relied on for years. The mortgage is registered in the National Registry, which gives the lender a legal claim on the property if a borrower does not repay. With loans at no more than half of a property’s value, there is room to recover the capital even if a property must be sold.

Large projects, too

Beyond individual loans, GAP arranges financing for large projects from US$1 million to US$100 million: hospitals, airports, shopping centres, resorts, mixed-use and major residential developments, industrial and logistics sites, and energy and water projects. Very few lenders in Costa Rica arrange capital at this size. Institutional partners can take part in these projects as well. Learn more on our project financing page.

Start the conversation

If you manage capital and want a secured, income-producing partner in Costa Rica, we would like to hear from you. Tell us about your fund, your mandate and what you are looking for, and Glenn Tellier, founder of Grupo GAP, will be in touch personally.

Contact Grupo GAP or email info@gap.cr.

This page is general information. It is not an offer to sell securities or investment advice. Terms are agreed individually with qualified institutional investors, and all lending involves risk.