Trump may be president-elect, but his Towers in India are unmoved
US president-elect Donald Trump has presence in a number of real estate projects in India, but his victory has not done much to enthuse the sector, which is reeling under the demonetisation shock.business Updated: Nov 22, 2016 17:44 IST
US president-elect Donald Trump has presence in a number of real estate projects in India, but his victory has not done much to enthuse the sector, which is reeling under the demonetisation shock.
Builders were elated that someone from their trade gets to become president of the world’s most powerful nation, this has no reflection in the property market. There are currently five Trump projects in India, of which two have already taken off. The remaining, in Gurgaon and Kolkata, would be launched next year, after he has been sworn in.
In Mumbai, he has tied up with the high profile Lodha Group, while in Pune his partners are the politically influential Panchshil Realty. Lodha Group founder Mangalprabhat is a BJP legislator while MP Supriya Sule, daughter of Sharad Pawar, NCP chief holds a stake in Panchshil Realty.
Asked about whether the Trump electoral victory in the US would impact his property, Sagar Chordia, director, Panchshil Realty merely said “It is too early for any such inquiry.”
The Lodha Group, meanwhile, did advertise its project during the presidential campaign, and described it as mere coincidence.
Both these projects are ultra-luxury projects aimed at high net worth individuals (HNIs) -- who hold $1 million (about 6.8 crore) or more in liquid assets.
The Lodha Trump Towers is a high-end tower in the Worli area of Mumbai with 75 floors planned, with price tags in the range of Rs 9 crore to Rs 25 crore. One of the highlights is that the residents will have access to a private jet service — a first-of-its-kind feature in India. They would also get a Trump Card that gives them special privileges and benefits at Trump Hotels and Golf resorts across the world.
Pankaj Kapoor, CEO, Liases Foras, said Trump’s elevation will not drive sales. “The luxury market which is already in recessionary mode suffered a blow due to demonetisation. The main buyers — businessmen and entrepreneurs — are stressed now and not in a position to buy in the present situation,” he said.
Donald Trump typically lends his name to various projects for a consideration. Apart from residential complexes, Trump also has a host of hotels, resorts as well as casinos sporting his brand name. In both the Indian projects, Trump has not invested any money but has given his brand name for which he is given a royalty based on the sales.
The Pune Trump Tower project has two towers of 23 single-apartment floors each. One tower has already been completed and residents given possession of their apartments. Sagar Chordia, director, Panchshil Realty said the Trump deal gave them international recognition. “Today we are known even in USA due to this collaboration,” he said. “Donald Trump is very particular about the standards and hence our buildings stand out.”
Bollywood actor Rishi Kapoor and son Ranbir bought apartments for Rs 13 crore each last year, which have been leased out and are earning more than Rs 5 lakh a month, which is the highest rental in the area.
Trump entered Indian realty in 2011 with an agreement with Rohan Lifescapes for an uber-luxury project in Hughes Road that fell through due to regulatory issues.