New Dominican Republic law 'will enhance property market'
By James Roberts

New Dominican Republic law 'will enhance property market'

New legislation that is being introduced in the Dominican Republic to enable the formation of real estate development and investment trusts is positive for the country.

This is the opinion of Luis Pellerano, partner in the Dominican Republic law firm Pellerano & Herrera, who explained in an article for The Metropolitan Corporate Council that the law also allows trusts to issue securities - including mortgage bonds, certificates and notes.

In addition, there are special provisions within the legislation to facilitate public-private partnerships (PPP) to develop low-cost housing in the Dominican Republic.

Earlier this month, Mr Pellerano stated there is growing interest in the use of PPPs in the Dominican Republic, although he told Latin Lawyer Reference - Project Finance 2013 that the main thing holding back PPPs is the lengthy approvals process.

He is confident, however, that the forthcoming legal changes will bring positive benefits: "The new Dominican law creates a market for securitised mortgages that will significantly enhance the country's housing and construction industries, while offering institutional investors an important investment opportunity," Mr Pellerano asserted.
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