Outlook Business
Real Estate Is The Most Effective Way To Capture The Growth Of The Middle Class Image Credit: Outlook Business
Real Estate Is The Most Effective Way To Capture The Growth Of The Middle Class Image Credit: Outlook Business

Real Estate Is The Most Effective Way To Capture The Growth Of The Middle Class

Lever House on Park Avenue is a New York City landmark that plays host to the office of Jaguar Growth Partners. As the name suggests, it was originally built in 1952 to house the American headquarters of Lever Brothers, the erstwhile avatar of present-day Anglo-Dutch consumer goods giant, Unilever. Jaguar’s co-founder Gary Garrabrant was a real estate investment banker before he embarked on a career in international real estate investing. Garrabrant’s mentor in the business was his uncle but Garrabrant was first drawn to real estate during his college days through a visiting professor who was a full-time real estate investor. Jaguar’s primary focus is emerging markets and its $350 million first fund has been fully deployed in Latin America. Jaguar is contemplating opening an office in Singapore to oversee its investments in Asia and in this interview with N Mahalakshmi and Rajesh Padmashali, Garrabrant outlines why he is bullish on India and the pockets where he sees opportunity.

N Mahalakshmi and Rajesh Padmashali

Amid this low growth, low inflation period, people are talking about political risk in the United States. Does that change your investing approach or outlook towards emerging markets in any manner?

Global investors’ today talk about political risk in the United States - that is something that I have never heard in my lifetime. We associate political risk with other countries, but not with the United States. That’s a reality now and there is a cost associated with it, which is time and productivity. Therefore, a shift is taking place in the developed as well as the developing world.

Our focus is growth markets globally. We like to invest in markets that are out of favour. For instance, we were opportunistic and invested in Mexico despite all this rhetoric like the Wall, Border Tax, etc. which is not likely to happen, at least not as advertised. We have also invested in Latin America, and see it as having a bright future and want to increase our exposure. There aren’t too many people doing what we are doing.

What makes you bullish about these markets and also about India? What is it that you understand about these markets that the rest don’t?

We are extremely sensitive to which market is attracting support from institutional investors and has an entrepreneurial foundation. We are excited about the growth of the middle class, and adjunct to that is the large segment of youth and their incre


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