 "Donald Trump to invest in second project with Panchshil")
Pune-based Panchshil Realty, developer of luxury properties, is developing a 1.4 million square feet of property in Pune wherein they are looking to tie-up with the Trumps and hence bring the second Trump Tower into the city.
“We would like to invest in India but India has some pretty strong laws. We do expect to invest in these buildings. But more importantly we need good local partnerships. We would like to invest in project with Panchshil. I would invest substantially with this partner,” said Trump.
Atul Chordia, chairman and CEO of Panchshil Realty said: “The project is still on the drawing board, we will perhaps make the announcement sometime next year. We need to get desired clearances. The only think I can say is that the project is spread over 1.4 million square feet.”
Though Trump announced the tie-up with the Lodha Group for Trump Towers in Mumbai on Tuesday, The Trump Towers, Pune will be the first project that will be ready for possession by August 2015. In both the projects—Mumbai & Pune—Trump is not infusing any equity but is a license agreement to use Trump’s brand name and standard specification for an undisclosed fee.
The Trump Towers in Pune are a set of two towers in glass and granite facades. Each tower will have 23 flats with a total area of 6,100 square feet, priced at Rs 22,000 per square feet. “We launched the first Tower a year back and have sold 70 per cent of the inventory. From the time of launch to present, the property has appreciated 20 per cent. The second tower will be launched 20 per cent above after the completion of the first, this will happen second quarter of next year,” said Chordia.
The project when launched had a price tag of Rs 17,000 per square feet. “We have been able to attract good customers as well. This includes Bollywood stars Ranbir Kapoor and Rishi Kapoor, Dilip Lakhi, who also recently bought the Cadbury House. Among NRIs we have Keni Kelwani from Dubai and others,” said Sagar Chordia of Panchshil Realty.
With the Panchshil partnership, Trump re-entered India in 2012, having failed to get its luxury tower with Rahul Lifespaces off the ground in 2010. “We decided not to do that development. But then for every project that we do we turn down around 10 projects. We turned down then because we didn’t think India was ready. There was a lot of fighting in the system then. Three years back the market was not ready, but now the luxury market is ready in India,” said Trump.
Trump also said that getting the right local partner was very crucial. “We were approached by several developers in India for real estate as well as other segments but we did not go ahead. This deal has happened because of Donald Trump Jr and Sagar Chordia,” he added. Though the Trump Towers in Pune at Rs 22,000 per square feet is one of the most expensive property in the city, Trump feels that prices for luxury segment are very low in India.
“It’s one of the reason why I like it. In New York you are talking about same quality at 20-30 per cent more cost. People buying here are going to make a good deal. It may sound a lot to somebody, but for me it sounds like the bargain of the century,” he said.
Trump also said that real estate will be the only area where he would be interested in investing in India. "We do develop golf courses too but that requires huge area. If we come across right site we may look at it," he said.