Key insights
- The Trump Organization abandoned plans for its first Australian skyscraper due to its partner's failure to meet financial obligations. While the project's cancellation reflects negatively on the Trump brand, its direct impact on US equity markets is minimal, primarily affecting investor sentiment towards Trump-related ventures.
SYDNEY, May 13 (Reuters) - The Trump Organization said on Wednesday it abandoned a plan to build its first tower in Australia less than three months after signing the deal, citing an Australian partner’s failure to meet certain financial obligations.
The group signed in February with Altus Property Group to develop a 91-storey skyscraper, a project worth A$1.5 billion ($1.09 billion), on the Gold Coast, a popular seaside and tourist destination in Australia’s Queensland state.
It said the project was contingent on licensing partner Altus meeting some obligations that were not fulfilled, and added it would explore other potential projects to build a Trump property in Australia soon.
Altus and Young did not immediately respond to Reuters’ requests for comment.
"After months of negotiations and empty promise, after empty promise, on a supposed A$1.5 billion project, Altus Property Group was unable to meet the most basic financial obligation due upon the execution of the agreement," a Trump Organization spokesperson said by email.
The spokesperson said Altus Chief Executive David Young blamed "some world events" for the termination, calling that "merely a ploy to distract from his own defaults and failures."
The Australian Financial Review newspaper reported the development would proceed without the Trump name and quoted Young denying unmet obligations.
Altus had pitched a "six-star resort-hotel", 270 apartments, shops, a beach club and a pool, with apartments likely starting at A$5 million ($3.62 million).
Some Gold Coast residents had opposed the tower with an online petition gathering more than 140,000 signatures. The page said they were "deeply uncomfortable with the Trump brand and what it represents."
($1 = 1.3820 Australian dollars)