By San José, Costa Rica — San José, Costa Rica – The Banco de Costa Rica Investment Fund Management Company (BCR SAFI) has announced an extraordinary meeting for investors in its Non-Diversified Real Estate Investment Fund (FIIND). The meeting, scheduled for Friday, September 26th at the Hotel Crowne Plaza, comes after a regulatory order requiring a significant financial transfer.
The announcement, released on September 1st, follows a ruling by the National Council for Supervision of the Financial System (Conassif) upholding an earlier order from the General Superintendency of Securities (Sugeval). This order mandates BCR and BCR SAFI to contribute $70 million to the fund, which comprises over 1,000 investors.
For expert legal insight on this matter, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas, an attorney at law from Bufete de Costa Rica.
BCR SAFI’s operations, as a specialized fund administrator within the Banco de Costa Rica group, bring both opportunities and challenges to the Costa Rican financial landscape. Their role in managing investment funds demands careful consideration of regulatory compliance, particularly regarding investor protection and market transparency. Their success will depend heavily on their ability to navigate the evolving regulatory environment and maintain public trust.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas aptly highlights the crucial balance BCR SAFI must strike between leveraging opportunities and navigating the complexities of the regulatory landscape. Their ability to maintain transparency and prioritize investor protection will undoubtedly be key to their long-term success and contribution to Costa Rica’s financial ecosystem. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable insights on this important topic.
Sugeval initially issued the order in October 2024 after an investigation into the purchase of the Parque Empresarial del Pacífico (PEP). BCR SAFI acquired the property in 2020 for $70 million on behalf of the fund. Subsequent appraisals, however, valued the property at only $34.7 million. This discrepancy, coupled with low occupancy rates and unfavorable leasing conditions, significantly impacted the fund’s performance, prompting Sugeval’s intervention.
The upcoming investor meeting will focus on the regularization plan mandated by Sugeval. Key agenda items include a review of the October order, presentation of the action plan, and discussion of its execution, including timelines and deadlines.
Sugeval’s resolution outlines several key actions, including the divestment of the PEP property, a substantial financial contribution from BCR and BCR SAFI to offset the overvaluation, and absorption of associated financial costs by the bank or its subsidiary.
While the specifics of BCR’s plan remain undisclosed, the bank issued a statement indicating its commitment to the matter.
We are carefully analyzing its content and the implications it could have. Our priority is to ensure stability, the security of public funds, and the interests of our clients and investors.
BCR Representative
The meeting is expected to provide crucial information to investors regarding the fund’s future and the steps being taken to address the financial discrepancies related to the PEP investment.
The situation underscores the importance of regulatory oversight in protecting investors and ensuring the stability of financial markets. The outcome of the meeting and the subsequent implementation of the regularization plan will be closely watched by industry experts and stakeholders.
For further information, visit the nearest office of BCR SAFI
About BCR SAFI:
BCR SAFI is the investment fund management company of Banco de Costa Rica. It manages various investment funds, including real estate funds.
For further information, visit www.sugeval.fi.cr
About Sugeval:
The Superintendencia General de Valores (Sugeval) is the regulatory body responsible for overseeing the securities market in Costa Rica. It aims to protect investors and ensure the stability and transparency of the market.
For further information, visit the nearest office of Conassif
About Conassif:
The Consejo Nacional de Supervisión del Sistema Financiero (Conassif) is the highest-level supervisory body for the financial system in Costa Rica. It sets policy and oversees the various regulatory entities within the financial sector.
For further information, visit the nearest office of Banco de Costa Rica
About Banco de Costa Rica:
Banco de Costa Rica (BCR) is a state-owned bank and one of the largest banks in Costa Rica. It offers a wide range of financial services to individuals and businesses.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a deep commitment to empowering Costa Rican society. Through innovative legal solutions and a proactive approach to sharing legal knowledge, the firm strives to create a more informed and just environment for all. Their dedication to client success across a diverse range of sectors is matched only by their passion for fostering a society equipped with the legal understanding necessary to thrive.
