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Looking at making more substantial investments in India: Donald Trump, The Trump Org

Comments Off on Looking at making more substantial investments in India: Donald Trump, The Trump Org   |   August 12, 2014    08:05pm   |Contributed by Indian Realty News

In an interview with ET Now, Donald Trump, Chairman & President, The Trump Org, speaks on their tie-up with realty major Lodha Group as well as India’s real estate market. Excerpts:

ET Now: What made you tie up with Lodha?

Donald Trump: There are a lot of brands and talented developers all over, but we chose Lodha for it being a great brand.

We had the opportunity to come to India and in this case Mumbai specifically. A lot of that had to do with Lodha and also India. Your new prime minister is doing a spectacular job outside India. The respect he has gendered is really great.

So, we have the opportunity to work with another great developer Lodha and we are happy about it.

ET Now: Will there be more tie-ups with Lodha after this particular project?

Donald Trump: It could happen. It could very well happen. We have a great relationship. We have been working on this project for almost three years and they do not go quickly. You have to be very careful and we have the right location. We had a great building. We have all other right amenities, super luxury. We did not have to do as good as we did. It was very important for both of us. Our sales have already been through the roof. People love the building. They love the location.

ET Now: But this is just a tie-up in terms of brand. There is no real financial investment here. Why have not we seen that happening yet?

Donald Trump: We actually think there will be. India is very strong in terms of its laws and rules and regulations on investment, but we are looking at doing that because we feel so strongly about not only my partner and my developer, but also the development itself.

We do have rules and regulations in India that are different from most countries. In the United States, they welcome investment. In India, they are very careful about it and I am not saying right or wrong because it might be a good thing. Sometimes in the United States I disagree with that very strongly, but they do have rules and regulations, but we are looking to make a substantial investment.

ET Now: You have gone on record to say that the real estate market in India will be one of your top three markets globally. But so far all we have seen are two tie-ups. What is the game plan from here on, which cities are you looking at, what kind of investments are you planning?

Donald Trump: Well two tie-ups are a lot of tie-ups. They are two very important jobs, two great jobs and the one in Mumbai is a very big one. I do not like to go too fast. I really stress quality over quantity. I can do hundreds. I turned down so many jobs because I do not want to do. We are in a very lucky position in life. I have a private company. It is a very massive company and it is a very successful company. I do what I want to do. In this case with Lodha and Mumbai, we are excited about the project itself. We can do many-many projects in India, but we want to do very good ones. It is important to say quality is much more important to me than quantity.

ET Now: What is your view on the Mumbai real estate market? Here prices have been on the rise, there is a lot of unsold inventory because developers have not really brought down prices. Given that you had a global experience and the sort of cycle that we are seeing, there are fears that there might be a bubble in the making which might burst. What is your take on this?

Donald Trump: Well, I really do understand that very well because we are in many cities and countries all over the world and one of the reasons we are here is because your prices are very low. Mumbai is a great and vibrant city. I have seen cities that are nothing compared to Mumbai, still their prices are much higher. I want to come in at low prices, I do not want to come in at high prices.

I really believe that the prices in this area are going to be substantially higher. I do not understand how they can be this low. One of the things I like doing is building and building and see prices go up because the people that buy or invest or whatever it is they are doing, they want to see that happen.

This is a great opportunity for people and developers. I also know some of the products being built and they were trying to take advantage of the market by not giving them the right product.

We are doing something that we do not actually have to do. We are going super quality, which is so important. People are seeing that and that is why the units or the apartments are flying off the shelves. That is why they are going so fast.

ET Now: Hospitality is a big part of your business. Can we see a Trump hotel coming into India soon?

Donald Trump: I can see that happening maybe sooner than you think. We are a very hot company in those terms. We have the Trump hotel collection and it is one of the fastest growing. In terms of super luxury, the fastest growing in the world.

We have a tremendous product already. We have the no 1 hotel in North America. We have many hotels. One going up in Rio, opened before the Olympics, a great location, best location. So, I can see a lot of things happening as far as Mumbai and as far as India is concerned.

Source: ET

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