Difference between revisions of "Foreign Real Estate"

Revision as of 20:53, 4 April 2017

Argentina

Buenos Aires - Trump Tower

Azerbaijan

Baku - Trump Tower

Brazil

Rio de Janeiro - Trump Hotel

Rio de Janeiro - Trump Towers

Bermuda

China

Cuba

Dominican Republic

Egypt

France

St. Martin - Chateau de Palmiers - Excel Venture

Georgia

Donald Trump signed a licensing deal with the President of Georgia in March of 2011 that would put his name on two proposed towers – the Trump Riviera Batumi and Trump Tower Tbilisi.^[1] Development of the $300 million deal was led by Giorgi Ramishvili, a Georgian businessman whose Silk Road Group was one of the largest companies in the region.^[2] Trump made no promises to invest his own money in the project, but stood to earn a licensing fee for the use of his name and would have managed the buildings if they ever opened.^[3] Neither building was ever completed.^[4]

Georgian President Mikheil Saakashvili attended the signing of the deal with Trump in New York City, apparently hoping that the agreement would bolster confidence among Western investors.^[5] For his part, Trump used the ceremony to boast of his foreign policy experience, claiming he was “dealing with one of the great leaders of the world.” ^[6] Local television stations back in Georgia apparently misreported the nature of the deal, wrongly claiming that Trump had agreed to invest in the former Soviet Republic.^[7] Georgian economic development officials portrayed the Trump deal as a significant public relations achievement, despite local criticism that it required no personal investment from Trump.^[8] At the time Trump's deal was signed, Georgia was in dire need of foreign investment, which had been sharply plummeting in the wake of Russia’s 2008 invasion and a global financial collapse.^[9] Georgia’s average per capita income in 2009 was a mere $2,455.^[10]

It is not presently known how much money Trump was paid to put his name on the Georgian real estate projects. Giorgi Ramishvilli claimed in 2016 that Trump had been paid when the agreement was first signed.^[11] Trump’s lawyer refused to explain how much Trump had received, telling a reporter that “the terms of the agreement are propriety and confidential.” ^[12] Trump’s financial disclosures reveal that he owns and controls two companies that may have been set up to receive licensing fees from Georgia. The two companies – Trump Marks Batumi LLC and Trump Marks Batumi Managing Member Corp – have no disclosed income, assets or value.

Trump first began exploring the possibility of a deal in Georgia in early 2010.^[13] Trump’s attorney, Michael Cohen, traveled to Georgia for two weeks, reportedly to scout out possible sites for the Trump-branded developments.^[14] Georgian President Mikheil Saakashvili first announced that an agreement had been reached in September of 2010.^[15] Trump personally traveled to Georgia in April of 2012, where he was awarded the local “Order of Lights” award.^[16] Local officials touted Trump’s brief visit as evidence that Georgia had received the “green light” for foreign investment.^[17] Following his visit, Trump claimed he was “considering” investing $100 million of his own money in Georgia.^[18] In the same interview he explained the Silk Road Group would be responsible for fundraising on the project. We have found no evidence that Trump ever invested his own money in the Georgia developments.

Georgia Under Saakashvili - No Labor Protections or Minimum Wages, Flat Taxes

1. ↑

   “ In a ceremony with caviar and wine at Trump Tower in Manhattan on Thursday, Mr. Trump signed a deal to develop the two tallest towers in the republic of Georgia, the former Soviet state at the nexus of Eastern Europe and Western Asia. Giving his blessing to the deal was Mikheil Saakashvili, the flamboyant, English-speaking president of Georgia. (‘’New York Times’’, March 11, 2011) ” ↑ “ Any actual construction, if it begins as scheduled in 2013, would be overseen by Giorgi Ramishvili, chairman of the Silk Road Group, one of the largest private investment companies in the south Caucasus region. The deal, which the partners estimate at $300 million, calls for two projects. The Trump Tower Tbilisi would go up on Rose Revolution Square in Georgia's capital. The Trump Riviera would be part of a planned Silk Road complex that includes a casino, an exhibition hall and a marina, in the resort city of Batumi on the Black Sea, near Turkey. (New York Times, March 11, 2011) ” ↑ “ In Georgia, Mr. Trump will license his name, and his company will manage the two properties. He will also work with Silk Road to line up financing for the projects and market the towers. Mr. Trump said that so far he had no plans to put his own cash into the deal. (New York Times, March 11, 2011) ” ↑ “ Donald Trump’s company pulled out of a proposed $250-million tower project in the Georgian Black Sea resort town of Batumi, the latest effort by the U.S. president-elect to defuse charges that his global businesses will cause conflicts of interest once he enters the White House. […] The Trump Tower in Batumi was widely assumed to have been shelved when Saakashvili lost power in 2013 and was later stripped of his Georgian citizenship. But Giorgi Ramishvili, Silk Road’s founder, said a month ago that it was still on track. (‘’Bloomberg News’’, January 4, 2017) ” ↑ “ For Georgia's president, it was a chance to show that his country, the former Soviet republic, is grand enough to attract the world's best-known real estate developer. And for that developer, Donald J. Trump, it was yet another opportunity to demonstrate that he is world class. [...] Mr. Saakashvili has been eager to draw celebrity foreign investors to show Georgia is again open for business, after the global recession and a war with Russia in 2008 dried up the foreign direct investment that had been propelling the economy. (New York Times, March 11, 2011) ” ↑ “ Trump even touted his meeting with Saakashvili, where the developer signed an investment deal for Georgia's Black Sea resort of Batumi, as proof of his made-for-the-presidency foreign policy credentials. "Of course. I am dealing with one of the great leaders of the world," Trump said, looking over at Saakashvili. (Agence France Presse, March 10, 2011) ” ↑ “ US businessman Donald Trump "plans to invest 250 million dollars in Georgia" and will "certainly" visit Georgia in the near future, the privately owned Rustavi-2 channel reported on 11 March. [...] While all three main national TV channel's presented the move as Trump investing money in Georgia, reports in international media suggest that Trump's will be managing the project and that the starting capital of 250m dollars is being put up by Georgian company Silk Road Group. (‘’BBC Monitoring Trans Caucusus Unit’’, March 11, 2011) ” ↑ “ Local critics were quick to note that although Trump signed a deal to allow the proposed luxury towers to be branded with his name and help raise financing for construction, he didn't actually commit any of his own funds to the estimated $250 million (180 million euro) project. But despite this, the government is optimistic that the US tycoon's celebrity allure could act as an advertisement. "When someone like Trump decides that Georgia is the right place to put his brand name, a lot of other companies will feel comfortable following in his footsteps," said economy minister Kobalia. (‘’Agence France Presse’’, March 20, 2011) ” ↑ {{Quotation|The deal was a PR boost for the ex-Soviet state which is struggling to lure back foreign investors following its war with Russia in 2008 and the global financial crisis. But statistics published the day after the agreement suggested that Georgia needs more help than the flamboyantly-coiffured US magnate has to offer. Foreign direct investment decreased by 16 percent in 2010 to $553 million (397 million euros), following an even more dramatic fall of 58 percent the previous year, according to preliminary figures from the state statistics office. […] The Georgian economy was propped up by $4.5 billion (3.23 billion euros) of US and EU aid and loans after the 2008 conflict, which maintained stability during the global crisis and enabled a post-war return to growth. (‘’Agence France Presse,’’ [March 20, 2011)}} ↑ “ Mr. Saakashvili has been eager to draw celebrity foreign investors to show Georgia is again open for business, after the global recession and a war with Russia in 2008 dried up the foreign direct investment that had been propelling the economy. Georgians remain poor. The average income, in a country of about 4.3 million people, was $2,455 in 2009. (New York Times, March 11, 2011) ” ↑ “ Trump's business ambitions have extended throughout the former Soviet Union and the Eastern bloc. [...] He spent three days in Georgia in 2011 to announce another project in the Black Sea resort town of Batumi. It has not been built, but a project official, Giorgi Rtskhiladze, told The Post that Trump was paid a fee for the use of his name when the agreement was signed. (‘’Washington Post’’, June 17, 2016) ” ↑ “ Cohen would not elaborate on the nature of the relationship between Silk Road and the Trump Organization. When asked if Trump had invested any of his own money in the Batumi high rise, he responded that "The terms of the agreement are propriety and confidential." (‘’The Atlantic’’, August 28, 2012) ” ↑ “ Maia Lomadze, public relations manager of the Silk Road Group, told RFE/RL on June 25 that the Trump Organization will jointly work with the Silk Road Group to invest in business projects in Tbilisi and the Georgian port city of Batumi. [...] Trump reportedly discussed the possibility of investing in Georgia in April during a meeting with Georgian President Mikheil Saakashvili in New York City, where the Trump Organization is headquartered. (Radio Free Europe, June 26, 2010) ” ↑ “ Entrepreneur and real estate mogul Donald Trump is considering real estate investments including casinos and golf courses in the former Soviet republic of Georgia. He has sent Michael Cohen, executive vice president of the Trump Organization, to the country to sound out possibilities after being impressed by the country's president Mikheil Saakashvili on a recent trip to New York. [...] Cohen visited 13 potential development sites and said he was impressed by the Black Sea coastal town of Batumi. It is largely an unknown destination outside central Europe but is a popular destination for tourists from Central Asia due to a temperate climate and proximity to the Turkish border. (Realty Plus, July 16, 2010) ” ↑ “ Trump signed an agreement with Georgia's President Mikheil Saakashvili in New York to build the tower, the presidential administration said in a statement. It provided no financial details of the agreement and said a decision had not yet been made on where the building would be located. [...] Saakashvili was in New York for the UN General Assembly session and for meetings with potential investors as he seeks to revive Georgia's struggling economy. (‘’Agence France Presse’’, September 22, 2010) ” ↑ “ The President of Georgia Mikheil Saakashvili awarded American billionaire and media tycoon Donald Trump with "Order of Lights". The ceremony took place on Saturday evening at the presidential palace in Tbilisi. […] Trump arrived in Tbilisi today and tomorrow he will attend a presentation of "Trump Tower" project in Batumi. (Trend Daily News Azerbaijan, April 21, 2012) ” ↑ “ Georgian Economy Minister Vera Kobalia has reiterated that US businessman [Donald Trump's] visit to Georgia is a sign of the green light for investors across the world. "Trump spent only two days in Georgia [on 21-22 April], but this fact has already triggered unprecedented interest of investors and the international media," Kobalia said. [...] "Trump['s visit] is a real sign of 'green light' for Georgia in terms of attracting new investments.” (‘’BBC Trans Caucasus Monitoring Unit’’, April 23, 2012) ” ↑ “ US property mogul Donald Trump is considering investing more than $100 million in a residential high rise on the Black Sea coast of Georgia as he considers projects in other former Soviet Union countries. "I'll be putting something in, but that has not been determined yet. For the job itself, it will be more than $100 million," he said during a visit to the capital city Tbilisi. Trump, who travelled to Georgia after a visit to Istanbul, unveiled the 47 story Trump Tower Batumi project with Georgian President Mikheil Saakashvili and partner Silk Road Group, one of the country's biggest private investment companies. "Batumi is becoming quite a place, it's the best location, the Monte Carlo of the region," Trump said. Silk Road will be responsible for fundraising, he added. [...] "As Georgia becomes a player in the global economy, what's extremely important for Georgia is to have a brand like Trump coming to Georgia and showing the world that like Western development Georgia is coming to the market as well," Michael Cohen, the Trump Organisation's executive vice president, told Reuters. (‘’Realty Plus’’, May 8, 2012) ”