Nakheel to develop Trump brands in Dubai, Mideast
Posted: Wednesday, October 05, 2005
Nakheel, a premier UAE property developer, and The Trump Organization of the US have entered into an exclusive joint venture to develop extensive real estate offerings throughout the Middle East. The Trump's first developments will take place on Nakheel's signature development The Palm, Jumeirah.
The largest privately held company in New York, the Trump Organization is one of the world's leading real estate developers, with an estimated revenue of $10.4 billion in 2004, and 22,000 employees.
Under the deal, Trump and Nakheel will market billions of dollars of Trump-branded hotels and residences.
But The Trump Organization is not bound to invest any money in the luxury developments, Nakheel chairman Sultan Ahmed Bin Sulayem told Reuters in an interview.
"The deal is specifically that we brand with the Donald Trump brand. The deal allows him to invest if he wants," said Bin Sulayem, adding that Nakheel will finance all initial development costs.
Nakheel has secured the rights to 17 Trump brands, including The Trump Plaza Marina Residences and Trump World Tower.
The Trump Organisation, as well as investing in the projects, will co-ordinate all sales, operate the hotels and manage each real estate development, as well as offering their unique concierge service Trump Touch.
Following on from the successes of New York's The Trump International Hotel and Tower, the first project to be developed with Nakheel will be The Palm Trump International Hotel and Tower. It will provide a spectacular luxury centerpiece hotel on The Golden Mile - the exclusive residential and retail boulevard on the trunk of The Palm, Jumeirah. In addition to The Palm, The Trump Organisation will also be launching a development on Nakheel's other signature development, The World.
Donald Trump, the company's chairman and president, is recognised as one of the world's most successful businessmen and real estate developers, as well as developing and starring in the number 1 hit TV show The Apprentice.
Donald Trump said: 'We anticipate a long-term relationship between The Trump Organization and Nakheel that will involve direct investment, sales and marketing, and management.'
'The partnership with Nakheel represents an unprecedented mega-opportunity for us with the increasing popularity of the Trump brand on a global basis. Dubai has proven to be an economic anchor, an engine for growth and tourism in the Middle East. We have found a partner in Nakheel that shares with us the importance of vision and providing the highest quality in every undertaking.'
Bin Sulayem said Nakheel would pay The Trump Organization a fee for rights to use the Trump name, based on revenue from the projects. "It is a percentage basis," he said.
He declined to give details, but said the value of the investment by Nakheel in Trump-branded projects would run to billions of dollars.
"Trump is a brand that everyone has seen working. It will open the door for us," said Bin Sulayem.
Nakheel has planned advertising campaigns in the US and Europe to promote Trump-branded projects.
Bin Sulayem admitted that a number of Nakheel developments in Dubai, including three man-made Palm islands and an offshore network of reclaimed islands in the shape of the world map, had been delayed by a lack of contractors.
The islands have proven popular with celebrities, including England football star David Beckham.
Bin Sulayem said work was progressing on the third and final palm island, but said Nakheel had stopped selling plots as it would not be completed for several years due to its scale -- it is roughly the size of Manhattan.
He ruled out an IPO in the near future. "It could happen, but it is not a priority for us."
"We have no problem with finance. We get some bridge finance from the banks. We don't need finance for more than five years, so the local banks are capable," Bin Sulayem added.
The Trump Organization has an extensive portfolio of properties including the renowned Fifth Avenue skyscraper, Trump Tower, luxury residential buildings Trump Palace - the tallest building on Manhattan's East Side - and The Trump International Hotel and Tower in New York, which is one of only three hotels in the USA to have received a double Mobil Five-Star rating for both the hotel and its restaurant Jean-Georges.
ah don't under estimate that! the shorelines are 10-12 floors and in the render above it looks about 5 times taller!!
also you have to take perspective into consideration!
nevertheless it does not look like 300m.
I like this, I don't know why. Usually I hate this type of architecture but I like this one and it's good for it's location. If it was built in the city I wouldn't like it but it makes a good centrepiece for the palm.
^^Trump has been doing this kind of thing for a while now, especially outside the US. He basically sells his name to a developer and might hold a share in the project. Not necessarily the same thing as a Trump Tower, or at least the same level of involvement.
Interesting design though. Normally I would be against this kind of tower, but it does look good in the center.
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