Taurus views Indian as a strategically important market, which will underpin its Emerging Markets strategy which already includes investments in Turkey, Argentina and Greece. India is already the third largest economy in the world (in terms of Purchasing Power Parity) and is home to a fifth of the globe’s population, including a young, aspirational middle class than numbers more than the entire population of Europe. A global leader in the service and engineering industries, India has become a dynamo of the world economy, together with China. India holds a key advantage in that its population is very young and it will have the world’s biggest work force for the next few decades as the mature economies in Europe and East Asia, including China, undergo either demographic stagnation or even decline.
India is urbanizing at break-neck speeds as hundreds of millions of people are expected to move from its rural hinterlands to the dozens of massive cities that dot the country, including Delhi, Mumbai and Bangalore, which have already become some of the world’s biggest and fastest growing metropolises. To sustain this pace of urbanization and economic expansion, the country needs hundreds of square feet of commercial space and tens of millions of residential units in the next decade alone. India has added over 400 million square feet of office space, in the last ten years.
Beyond the eight or so cities with populations exceeding ten million each, India has a further fifty or more cities with metropolitan populations of two million or more apiece. These so-called Tier 2 cities are growing rapidly, both demographically and economically, often supply much of the work force that is employed by multinational and Indian firms in the bigger cities like Mumbai and Bangalore. With income growth, the middle class populations of these Tier 2 cities are aspiring to cosmopolitan lifestyles while large employers are actively contemplating moving operations to these cities which offer lower costs, lower staff attrition rates, direct access to talent and better quality of life.
Taurus proposes to invest primarily in India’s Tier 2 cities, with a focus on high growth markets. Our investments will be across asset classes, with a focus on office, mixed use and residential assets. Taurus will invest in association with capable, experienced joint venture partners wherever possible as well as enter into Public Private Partnerships. We will leverage our extensive in-house due diligence, acquisition, financing, project management and asset & property management capabilities as well as work with the best global consultants and contractors to ensure that our global standards are maintained in each project in India.
Overall, Taurus is aiming to build a portfolio of over $500 million in assets in India by 2020 and is currently working on an active deal pipeline over $350 million of opportunities across India.