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Mon 5 Oct 2009 11:52 AM

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Trump Tower will not happen 'any time soon'

Donald Trump Jr hopes work on cancelled hotel and tower will begin in two years.

Trump Tower will not happen 'any time soon'
TRUMP TOWER: An artists impression of the cancelled project.

Donald Trump Jr has confirmed that building work on the cancelled Trump International Hotel and Towers will not happen "any time soon".

Trump, vice president of the Trump Organisation and son of property tycoon, Donald Trump, said he hoped construction would begin in two years, but said it made no sense to build at the moment.

"Its going to take some time...I would say it's not going to happen any time soon," he said during a Q&A session following his key note presentation at Monday's Cityscape.

"There is a time for a project like that in that location," he added.

"We have a great partnership with Nakheel; they've done a great job with keeping us in the loop," he said.

In May it was reported that work on Trump International Hotel and Tower, the first project in the region for Donald Trump, had been delayed indefinitely.

In June last year one buyer offered to pay 11,100 per sq foot for a penthouse in the development, which at the time was almost double the price of property in the Burj Dubai.

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Kaptain 10 years ago

..until Dubai pays off all its debt and returns back to normal and it's senses. It should now focus on consolidating it's business base as it did earlier before the Property boom, without rushing after the lust of 'quick' money. It should shed the notion of greedy gains. Business is partly greed but not all of it. Dubai should stop lending ears and hands to advisors who would speed off with its hard earned 'expat' money.

sumster 10 years ago

The debt of Dubai is hardly something to worry about. Countries and cities can take on a lot of debt with very little problems. Think about it, the worlds largest economy (USA.. in case you didn't know) was almost entirely built on debt funding. Your logic of returning to 'normal' is based on an emotional response to a crisis, that is not based on any aconomic or financial theory. You probably should read a few more articles on this website before commenting!

SR 10 years ago

May be, but the issue is it is over 100% of the GDP!!!! It is indeed based on a financial theory (ever heard of something called debt trap??). Highly leveraged means that your cost of future borrowings (for refinancing) is going to be higher (due to higher risk premium resulting from lower ratings). Then much higher interest payments and you get in to a vicious cycle. Therefore debt needs to be reduced to a managable level!

Mounir 10 years ago

SR: Dubai is a member of a federal union called the United Arab Emirates; and its debts do not exceed 100% of the GDP of the United Arab Emirates. Trying to single out Dubai's GDP as independent of the UAE is like trying to single out Idaho's GDP from the US or Prince Edward Island's GDP from Canada. Abu Dhabi has bailed out Dubai in the 80's, the 90's and as recently as last year. As long as there is money to spare, the bailouts will continue to happen.

SR 10 years ago

Dear Mounir, I am not saying anything bad, my argument is that a concious effort needs to be taken to reduce the level of debt. That is the way forward for Dubai. It may be as a bailout by AUH or any other way, but this needs to be done. There is no point in saying that this level level of debt is alright because US has debt or because Idaho or Prince Edward Island in Canada has debt!!!!!!!! Moreover don't you think it is a better and a more conservative assessment to compare vis-a-vis Dubai GDP and take corrective measures rather than take a liberal view by comparing against the GDP of UAE??

Simon 10 years ago

Sumster...not to worry about the debt issues is folly. The USA you say is/was built on debt...The USA is now Bankrupt! They now have debts that economists openly admit can never be repaid, currently in excess of their annual GDP of $14trillion. If china and Japan stop buying america's treasury bills the USA will be in bigger trouble than it is now. The USA has had a 'phoney' economy for nearly 20yrs and its all coming home to roost. They have been a consumer society for too long at the expense of a manufacturing base. Their GDP is 70% cosumer based and 30% manufacturing. There is no way they can get out of the problems they are in right now by spending more. It is impossible to spend your way out of debt unless the money is ploughed into a manufacturing base (which in the USA it isn't) that will increase your GDP above the level of debt you already owe...so all the USA is doing is creating more and more debt. Dubai, to a certain extent, has had its own 'phoney' economy based on consumerism and a massively leveraged debt burden. Now money is more expensive to borrow...if at all...and Dubai's credit rating internationally has been lowered from previous levels. Not to worry about debt is not the way to emerge from these difficult times. Kaptains comments are not without economic foundation...unfortunately, yours are!

Meredith 10 years ago

Mounir, You are 100% spot on. Reminds me of a saying "a fool and his money are soon parted". M.

Srivatsa 10 years ago

I do agree with Sumster that US econcomy was built on debt funding and it is good to have such an economy and makes busniess sense. The crux is the sectors of the economy u develop using these funds and the returns to be sustainable for a long term growth. Dubai planning has been good in view that it has worked for the past years, but needs to relooked in wake of the crisis and the unhealthy growth it witnessed in 2006- 2008. For me Dubai has a great future as it has a dynamic leadership which is quite open.

Sumster 10 years ago

Simon, When you say the US is bankrupt, what exactly do you mean? That its debts are larger than its GDP? That is simply not true! Its debts is approximately 40% of its current GDP. Your point of China and Japan stopping buying US currency has no basis as if they consider doing so, they hold so much of it that the value of the currency they hold would drastically drop. Your point about bringing in manufacturing to revive the economy in Dubai is harshly outdated. Manufacturing just employs a lot of people (and not very well) doesn't always bring true value to a city or a country. Besides, while the UAE has geographically great location, it would be foolish to compete with China on a manufacturing basis. The competition would merely create a lot of overworked manufacturing industry laborers and a few very rich owners. Instead, the tact used by Dubai in creating a service-based industry is actually quite clever realizing that the UAE, especially Dubai, has limited natural resources to leverage.

rouzbeh 10 years ago

Sumster, You are wrong, the total debt of USA is around 9 trillion dollar, Its GDP is around 2 Trillion Dollar. And please don’t get me started about the manufacturing comment you just made. Please register for a course on Economics, before giving a laughable comment.