Altus Property Group

Developer Altus Cites Brand Toxicity as Primary Reason for Deal Collapse

The proposed 91-storey Trump Tower at Surfers Paradise, marketed as Australia’s tallest building, has been abandoned following a rapid collapse of negotiations between the Trump Organization and its Australian partner, Altus Property Group. The project, announced in late February, was intended to bring the Trump brand’s first hotel to Australia but was pulled after just three months, with both sides citing irreconcilable differences.

Developer Cites ‘Toxic’ Brand as Key Factor

Altus Property Group CEO David Young attributed the deal’s failure to the growing perception of the Trump brand as “toxic” in Australia, particularly amid international events such as the Iran conflict.

Let’s just say that with the Iran war and everything else, the Trump brand was increasingly toxic in Australia. Some time ago, we knew it was time to part company.

David Young, CEO, Altus Property Group

Young’s comments reflect a broader shift in public sentiment, with community opposition to the project gathering significant momentum. A petition launched by the Australian left-wing advocacy group GetUp! attracted over 120,000 signatures against the Trump Tower, further complicating the project’s viability.

Trump Organization Accuses Altus of Financial Non-Compliance

The Trump Organization, however, framed the breakdown as a failure by Altus to meet financial obligations.

After months of negotiations and empty promises, Altus Property Group was unable to meet the most basic financial obligations.

Trump Organization Spokesperson

Gold Coast Mayor Tom Tate suggested that profit margins and funding expectations were at the heart of the dispute. Tate, who met with Donald and Eric Trump at Mar-a-Lago before the deal was announced, noted that the Trump Organization demanded higher funding and profit shares, while Altus sought to minimize its financial exposure.

It’s all about money. The Trump Organization wants a lot more for their brand on the funding side of things, to operate it and the percentage of return. The developer’s going, ‘Well, I’m putting in all of my money in and you’re actually going to take quite a lot of profit,’ so I think that’s why they’re parting ways.

Tom Tate, Mayor, Gold Coast

Industry sources indicate that some potential investors were wary of the project’s financial risks, particularly for a luxury hotel in a competitive market. Despite the project’s high profile, a development application was never lodged with the City of Gold Coast, leaving the site’s future uncertain.

Altus Property Group’s Financial History and Site’s Uncertain Future

Altus Property Group, led by David Young, has a history of financial difficulties. ABC News reported that Young has twice declared bankruptcy and has been involved in businesses that collapsed owing millions. Despite the Trump Tower’s collapse, Young remains optimistic about developing the Surfers Paradise site, stating that the project is “live” and exploring other luxury brand options.

The site itself, owned by consortium 3 Trickett Street Pty Ltd, has been vacant for over a decade and has changed hands multiple times. The proposed Trump Tower would have stood at 335 meters, surpassing any existing building in Australia. However, the project’s cancellation leaves the site’s future in limbo, with no immediate plans for redevelopment.

Broader Impact on Trump’s Australian Expansion and Future Developments

The scrapping of the Gold Coast Trump Tower marks a setback for the Trump Organization’s expansion into Australia. While the company has not ruled out future projects, the rapid collapse of this deal underscores the challenges of bringing a politically divisive brand into new markets. For Altus Property Group, the failure highlights the risks of partnering with high-profile, high-maintenance brands in an environment of shifting public sentiment and financial scrutiny.

The project’s demise also serves as a reminder of the complexities of large-scale urban development, where financial, political, and community factors can quickly derail even the most ambitious plans.