IndiaPost.com - Realty major Trump plans India foray

MUMBAI: The "incredible" growth in the Indian realty sector has attracted Trump Organization, the largest high-end condominium builder of the US, and it is looking for a joint venture partnership in India over the next 12-18 months.

"We are looking for JV partners to enter India. That is precisely why I am here. We are interested in the major cities for investment," Donald Trump Jr, executive vice president (development and acquisition), Trump Organization, said here. "On a later date, we may enter the secondary and tertiary cities as they grow," he added.

Asked which cities his company would be interested to invest in, he said, "Certainly, the city I'm standing on (Mumbai), Delhi, Hyderabad and Bangalore where the IT sector has witnessed a boom." Trump said the company had no intention to enter the middle or low-income segment since it is "the best in the high-end sector." The company would also look at developing hotels and resorts, he said. "Now is the time to come to India...

We hope to strike the deal in the next 12-18 months. We will be eager to do it before that," Trump Jr said. He, however, declined to divulge the proposed investment, saying it would depend on the projects. According to him, India has created a far more conducive environment for foreign investment over the past decade. Infrastructure still remained a major roadblock, and this needed to be addressed, he said. "Deregulation has paved the way for foreign direct investment (FDI). Foreign players have been provided with a level playing field. That's great. Whenever they come, efficiencies grow. India required FDI to take the sector to the next level.

It will help other sectors as well," he said. Trump owns and manages several marquee hotels, resorts, casinos and building complexes in New York, including the Trump Casino, Trump International Hotel, Trump Marina Hotel and Casino, Trump Taj Mahal Casino Resort and Trump Tower. The company recently entered the Dubai property market with the Palm Trump International Hotel and Tower through a local joint venture. In India too, Trump is planning joint ventures or licensing agreements with local developers. "We are in talks with many developers, hopefully we will be able to sign a deal in the next 18 months.

However, there are not many high-end products that we can buy into," he said. Trump is of the view that although property prices in India have spiraled, they are not as high as global realty prices. "There is a shift from rental homes to owned houses and the educated youth is creating a lot of wealth. This factor can be utilized by the luxury developers like us," Trump said. Trump believes that the emergence of nuclear families and demand for real estate can drive the growth for high-end developers.

"Like the US, India is becoming increasingly urbanized, where more youth are moving into cities. This is another opportunity," he said. He said upcoming high-end projects in India have instilled confidence in developers and investors like them to enter the country. "When I came here some years ago, developers were making tall claims. Today, we can see a lot of good high rises coming up and it instills a confidence in us," he said.