First Trump Tower opened in Gurugram

Five years after it entered the Indian real estate market, The Trump Organization, the New York-based business venture of US president Donald Trump, launched its fourth and last residential project in India on Wednesday.

Launched in Gurugram, the latest Trump Tower entails a total development cost of around Rs1,000-1,500 crore and would comprise around 275 luxury homes, Kalpesh Mehta, founder of Tribeca Developers has reportedly said.

In India, The Trump Organization works with local developers via brand licensing agreements and has not made any equity investments. The Trump-branded residences sold in India have been priced in the Rs3.5-15 crore segment.

The project was a joint endeavour between real estate firm M3M India Pvt Ltd and Tribeca Developers, the official representative of The Trump Organization in India.

“For the foreseeable future this is the last residential project in India. The plan right now is to focus on completing sales and deliveries of the other existing projects,” Mehta said.

Apart from the four residential projects, The Trump Organization has an upcoming commercial project in India, which is expected to be launched soon. In 2016, it signed its first commercial office deal with Gurugram-based private equity and real estate firm Ireo.

“No project has been signed after he took over as president (in January 2017),” Mehta said.

Trump adviser Sheri Dillon had said that The Trump Organization would not enter into any new overseas deals while Trump is president, according to a Reuters report published on 11 January, 2017. Trump had also announced that he would “resign from all positions overseeing his hotels, golf courses and hundreds of other businesses and move his assets into a trust..”, Reuters had reported.

Trump has signed five projects with different partners so far including one in Mumbai with Lodha Developers Pvt. Ltd, one with Panchshil Realty in Pune, a residential project in Gurgaon with M3M, an office project with M3M (also in Gurgaon) and Unimark Group in Gurugram.

The total revenue potential of Trump Towers in India stand at around $1.5 billion making India one of the largest markets for The Trump Organization.

The latest is that M3M has stated that it has sold 20 luxury apartments in the Tower for Rs. 150 crore on the very first day itself.

Leave a Reply