Trump Realty Co Inks Deal for Gur­gaon Project

Amer­i­can real es­tate firm to lend its name to de­vel­oper IREO’s high-end of­fice build­ing, which will see an in­vest­ment of .₹ 1k cr

The Economic Times - - Economy & Companies - Rav­iTeja.Sharma@ times­group.com

New Delhi: The Trump Or­ga­ni­za­tion has signed its first com­mer­cial of­fice deal in In­dia with pri­vate equity fund and de­vel­oper IREO in Gur­gaon.

The Amer­i­can real es­tate firm founded by Don­ald Trump, the front run­ner for the Repub­li­can nom­i­na­tion for the Pres­i­dent of the United States, will lend its name to a new high-end 600,000-700,000 sq ft of­fice build­ing on Gur­gaon’s Golf Course Ex­ten­sion Road, which will be built by IREO along­side a re­tail com­plex for about .₹ 1,000 crore.

Don­ald Trump Jr, ex­ec­u­tive vice pres­i­dent at The Trump Or­ga­ni­za­tion, said Gur­gaon is ready for such a project. “We fully un­der­stand that there is quite a bit of com­mer­cial of­fice space in In­dia, es­pe­cially in Gur­gaon, but I think when we talk about the lux­ury seg­ment, the mar­ket is truly un­der­served,” he said.

Lalit Goyal, man­ag­ing di­rec­tor, IREO, said the com­pany has been in talks with Trump for a long time and was wait­ing for the right time to en­ter the mar­ket with such a prod­uct. “Now is the right time as Gur­gaon to­day is short on high qual­ity com­mer­cial of­fice space,” he said.

Trump said, “I’ve been there a few times. I think, like a lot of In­dia, whether it is res­i­den­tial or com­mer­cial, it is gen­er­ally un­der­served in the lux­ury mar­ket.”

Res­i­den­tial mar­kets in In­dia have

ON LUX­URY MAR­KET

made the leap for­ward to­wards lux­ury, but this is not the case with of­fices, Trump said. “As the mar­ket con­tin­ues to grow and as In­dia con­tin­ues to lure big world-class com­pa­nies, their level of ex­pec­ta­tion of what the qual­ity of their of­fice prod­uct has to be needs to be raised, and I think that’s ex­actly what a project like this will do,” he said.

The of­fice build­ing, which will be de­signed by ar­chi­tect Nor­man Fos­ter, will be part of the larger mas- ter-planned IREO city in sec­tor 61 of Gur­gaon. “Trump will be lend­ing their name to the build­ing and also shar­ing their global ex­per­tise on de­sign and plan­ning,” Goyal said. Trump said his firm will add value to the project on the de­sign as­pect as well. “We’ve talked with the team and my fa­ther has ac­tu­ally looked at some of those ini­tial ren­der­ings to com­ment on it to see what we want to choose with re­la­tion to the exter­ior façade and other com­po­nents,” he said. He did not com­ment, though, on whether his firm will in­vest and take an equity stake in this project. “It de­pends on the project, on a case-to­case ba­sis. We do that in many places, it’s a ques­tion of the deal. We would never rule that out, of course,” he said. Gur­gaon, Trump said, is a mar­ket for the com­pany on the res­i­den­tial side of the busi­ness as well. Asked if any deal is in the off­ing, he said, “We don’t like to count our chick- ens be­fore they are hatched but we have been work­ing on a few deals and look­ing at nu­mer­ous deals in the mar­ket. Hope­fully, we’ll have some­thing to an­nounce in the not too dis­tant fu­ture.”

The com­pany al­ready has two res­i­den­tial projects in Pune and Mum­bai. It had part­nered Lodha group for a high-end res­i­den­tial project in cen­tral Mum­bai in Lower Parel. Panchshil realty had signed a sim­i­lar deal with it in 2012 and is close to com­plet­ing the Trump Tower in up­scale Kalyani Na­gar area of Pune. Trump said his com­pany is look­ing at mar­kets such as Ben­galuru and Hy­der­abad and even mar­kets within mar­kets for more such deals. It is also look­ing at Goa for a re­sort kind of prop­erty.

“This (Gur­gaon project) is our third project in In­dia in as many years and so we are very ex­cited about the progress that we are mak­ing here and be­lieve that we have a very long-term fu­ture as a com­pany in In­dia,” he said.

AFP

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