The interview is lengthy, and wraps up with a discussion about global markets, and Lorenz tells why Taurus invests in certain countries:
It [Taurus] also invests in countries which do not bet conservative investors. Argentina is experiencing a national crisis. Turkey has big political problems of India is not developing as many investors expected. Why did you choose these particular countries?
There are countries that certainly would be just as interesting, such as Malaysia, Vietnam, Indonesia, Rwanda, Mozambique, and South Africa, to name a few. Ultimately, our business model is based on having a strong individual in a country. Our Director in Argentina is an Argentine first level; our man in Turkey is Turkish; our man in India is Indian.Without trust these people would not be able to win local investors or make deals . Ideally we want someone who has a good network at their disposal. When we have such an individual we can not enter the market.
"Investments based on a Philosophy"
Can you give us an example of how it works?
In Turkey, for example, we have developed an office building and a shopping center to the tune of three million digits. Our man in Istanbul organized everything and got aboard Turkish investors. 70 percent of the money comes from Turkey, the rest worldwide.
What is your assessment of southern Europe?
We also look at the region, particularly Spain. We are convinced that the two criteria I mentioned earlier, demographics and labor market trends are not in favor of Spain. Although the demographic evolution of Spain is somewhat better than in Germany, the employment situation is much worse. We decided not to invest in Spain.
Is the crisis in southern Europe will end soon?
We believe that the countries of southern Europe still have difficult times ahead before they can regain a sound economic base. Without the funding from Germany not only Spain, but also Italy would be in a very tight corner. Where we want to invest, but now we can not because we are involved in the consolidation of our activities in India, is Africa.
Many investors mainly associated Africa with poverty, lawlessness and corruption. What countries do you mean?
Rwanda is a wonderful country. Mozambique is also interesting. However, in the case of a company that was founded 40 years ago and in an interim phase of 20 years has become an American enterprise, with added value and strong ... we must allow time for such things. Sometimes we get angry about missed opportunities, but despite this, we first want to focus on our projects in India and Turkey, and ensure they are successful. The most exciting project for me personally, is in Austin, Texas.
That's where you are making a large housing development incorporating alternative energy sources.
We bought plots of land during the crisis and we are very satisfied. We are developing additional 7,500 homes and 100,000 square meters of land for schools, parks and other facilities.
The big attraction is a geothermal system that provides energy. The technology will be provided by Bosch and BASF. Austin is a thriving, young and liberal city. And we've been fortunate that a new road has been built nearby. We expect our investors to at least double its capital.
Why, despite the "Energy Revolution" This type of geothermal energy projects in Germany do not work?
If you could show me a piece of land to allow the construction of several thousand homes in a good location and infrastructure, we would in Germany too. This type of project has to reach a critical size of thousand homes to be profitable. The local government has major problems with this type of project.
The German owners have been supporters of alternative energy sources for a long time.
If you, as an individual, purchase a geothermal system, it does because of its philosophy. And so you forget the figures and do something good for the environment. The reason the project in Austin is so interesting is because it is gigantic. In total we have invested nearly one hundred million dollars to date; It is a responsibility that can only be assumed if economies of scale are appropriate.
TAURUS INVESTMENT - FACTS AND FIGURES
Managed assets: Taurus Investment Holding currently manages real estate valued at three billion dollars.
Customers : Customers Investment deTaurus consist mainly high net worth individuals. Many of them come from German-speaking countries, USA, Canada and Israel. In addition, institutional customers have also invested $ 350 million with Taurus.
Offices: The company is headquartered in Boston, USA Taurus also has offices in London, Florida, Texas, Munich, Buenos Aires, Istanbul, Athens and Trivandrum (India). In total, Taurus operates in 16 markets worldwide. ( Editor's Note: In Argentina operates through Taurus Americas and its main project is the development and operation of the Southern Park) .
Projects: The volume of projects Taurus is generally in the range of 10 to 100 million US dollars. Between 5 and 20 investors can participate in each project. The flagship project of the company is currently in Whisper Valley, located near Austin, Texas.