Plans for a Trump Tower on Australia’s Gold Coast have been scrapped just three months after they were announced, with the developer blaming the US president’s “toxic brand” and the Iran war for the project’s collapse.
Altus Property Group chief executive David Young said that the Iran war had made the Trump brand increasingly difficult to work with in Australia.
“Let’s just say that with the Iran war and everything else, the Trump brand was increasingly toxic in Australia,” he said. “Some time ago, we knew it was time to part company. It was not about not meeting obligations. There are other luxury brand options for us. The project is live.”
The Trump Organisation disputed that account, saying the developer had failed to meet basic financial obligations.
“After months of negotiations and empty promise after empty promise, on a supposed A$1.5bn ($1bn; £802m) project, Altus Property Group was unable to meet the most basic financial obligation due upon the execution of the agreement,” said Kimberly Benza, director of executive operations for the Trump Organisation.
“Mr Young’s attempt to blame certain world events for our termination of the agreement is merely a ploy to distract from his own defaults and failures.”
The organisation said it looked forward to exploring other potential projects in Australia.
Gold Coast mayor Tom Tate said the collapse came down to negotiations over profit margins rather than politics.
“The Trump Organisation wants a lot more for their brand on the funding side of things, to operate it and the percentage of return,” he told ABC Gold Coast. “The developer’s going, ‘Well, I’m putting in all of my money, and you’re actually going to take quite a lot of profit,’ so I think that’s why they’re parting ways.”
Mr Tate had met Donald and Eric Trump at Mar-a-Lago in the days before the deal was announced, with the Trump Organisation footing the cost of his meals, accommodation, and transfers.
ABC quoted industry sources who spoke to financiers approached to fund the project as saying some investors had been wary about the risk associated with a luxury hotel on the Gold Coast.
A development application for the project was never lodged with the City of Gold Coast, and the site at Surfers Paradise has been vacant for more than a decade, passing through the hands of several owners. It already has existing council approval for an 89-storey tower.
The 91-storey luxury hotel and residential tower was announced in February and would have stood 335m (1099ft) tall – higher than the Shard in London – making it Australia’s tallest building. It was to include 285 hotel rooms, 272 luxury apartments, shops, restaurants, and an exclusive beach club, with construction due to begin in August. Details about the project have since been deleted from the Trump Organisation’s website.
When the project was announced, Eric Trump said it was the company’s first official foray into Australia, bringing “the prestige and allure of a world-class luxury brand” to the country.
The project divided locals from the outset, with petitions against the development attracting more than 120,000 signatures compared with around 3,500 for a rival petition in support.
