- Donald Trump has branding and licensing deals with real-estate companies in India.
- His election to president of the United States is expected to boost the value of his projects here.
- The Trump organization wants India to be its largest revenue generator after the USA.
Delhi: While America and the rest of the world recovers from Donald Trump’s shock win in the US elections, his win is being closely followed by real estate companies in India, where he has business interests.
Donald Trump made his fortunes in the real estate sector and he is the chairman of the Trump Organization. The company recently tied up with private equity-real estate firm IREO to develop an office tower in Gurgaon. In 2014, Donald Trump visited India and signed brand-licensing deals with the Mumbai-based Lodha group and the Pune-based Panchshil Realty to develop a Trump Tower in both cities.
Designed to be ultra-exclusive and super-luxurious, these buildings hope to replicate the success of the Iconic Trump Tower in New York.
“He has been successful in everything that he has worked on and we wish him all success as he takes over the most important role in the world. The Trump Organization is a valued partner of the Lodha Group and we look forward to continue working together to create Mumbai's finest development at Trump Tower Mumbai,” says Abhishek Lodha, Managing Director, Lodha Group reacting to Donald Trump’s win.
Branding and licensing plays a big part in the Trump organization's business strategy, especially in India. The Trump organization has been actively seeking opportunities in Bangalore, Goa and Hyderabad among other cities and is looking at India as the company’s largest revenue generator after the USA.
“Trump has five ongoing deals in India with a gross development value of about $1.5 billion. Sales have begun in two projects and one of those projects has already been delivered. Three more projects are likely to be launched in 2017,” says Kalpesh Mehta, managing partner at Tribeca Developers, the Trump Organization’s exclusive representative in India.
Real estate experts say Donald Trump’s win and impending elevation to be the US President will only serve to enhance the Trump Organization’s appeal to Indian developers. But they warn that this could be a double-edged sword as well.
“With the win, people would further associate the Trump brand with the mark of ‘success’ and ‘power’. However, similarly his brand could face a constant threat from negativity associated with American Presidency & Policy, just as it could benefit from any positive impact from the same,” says Joe Verghese, managing director of Colliers International.
Part of the ultra-luxury housing segment, Trump-branded projects are already being sold at a premium of 35% to 60% compared to similar projects in the same area. Real estate experts say the idea of living in President Trump’s building will only add to this.
“Obviously there will be a positive impact on the visibility of the projects because he is kind of a de facto ambassador. So when you have Trump Tower you will obviously expect some people to take some amount of premium, some amount of comfort because it is the most spoken after person or the biggest leader of the world. So project he is partnering with will definitely be more saleable, will be better placed and will command a premium more than what it was prior to his election as the president,” says Gulam Zia, executive director of Knight Frank India.
Donald Trump has licensed his name to resorts and residential properties in countries like Canada, Turkey and Brazil among others and now, emerging markets in Asia are proving to be a big draw. Considering that he will be the first president of the United States of America to have partnered with developers in India, it is definitely an endorsement of Indian real estate that will not go unnoticed.
Watch Donald Trump talk about his India plans in this exclusive interview recorded in 2014.