Controversial Trump Tower on Gold Coast falls over
The brand touted as being unpopular to Australians, pulls out of its Surfers Paradise project amid questions over obligations being met.
PLANS for a $1.5 billion waterfront Trump Tower at Surfers Paradise have been scrapped.
The Trump Organisation has pulled out, with the founder of Australian developer Altus posting on social media that the brand associated with the US President had become unpopular to Australians.
The 91-storey tower was announced in late February by Eric Trump, President Donald Trump’s second son.
Named the Trump International Hotel and Tower, it was to be Australia’s tallest building.
Altus Property Group chief executive and founder David Young confirmed on business network LinkedIn that the Trump Organisation had pulled the pin. He cited the war in Iran, among other things, as part of the issue.
In his social media post, Young said the perception that the Trump brand was unpopular was “grossly unfair” because the business entity was separate from the US Presidency.
A Trump Organisation spokeswoman said the project was dependent on their licensing partner meeting certain obligations.
“Unfortunately, those obligations were not fulfilled,” she said.
“We look forward to exploring other potential projects and bringing a Trump property to Australia soon.”
Young denied that allegation and said the development of the Trickett Street site would still go ahead.
“It wasn’t about not meeting obligations,” he said. “There are other luxury brand options for us. The project is live.”
Gold Coast Mayor Tom Tate believes the deal fell through because of disagreement over profit margins.
“It’s all about money,” Tate told ABC Gold Coast. “The Trump Organisation wants a lot more for their brand … to operate it and the percentage of return.”
Tate met with Donald and Eric Trump at Mar-a-Lago shortly before the deal was announced.
The Trump plan was highly controversial, with more than 124,000 people signing a petition opposing the building.
The site was once occupied by Iluka, a 20-storey 1970s building demolished in 2013.
Despite no new DA being lodged, 3 Trickett Street has existing council approval for a 89-storey tower.
Altus’ website said “early works” for the Trump Tower had been approved and construction was to have begun this August.
“The first ultra-luxury address is coming soon to Australia’s iconic Gold Coast,” it said.
“This landmark destination will deliver an exceptional residential and globally renowned hospitality and service experience unlike anything seen in Australia.”
