Donald Trump to Sell His Name
The Trump Organization corporation has announced that it wants to build elite housing and hotels in Moscow, St. Petersburg and Sochi, and to sell licenses to other developers to use the Trump name, according to Donald Trump, Jr., speaking at the “Real Estate in Russia” conference. The corporation registered the Trump name as a trade mark in Russia last August. Although franchising is not common on the real estate market, Pavel Fuks of MosCityGroup would have bought the Trump name for his tower, were it not for the stiff price. Trump sometimes asks 25 percent of the cost of a project to put his name on it.
Trump did not specify the volume of investment in the new market. He said Trump Organization plans to license its trademark first. He noted that, while the U.S. real estate market is stagnating, the cost of a square meter in Russia has growing by almost 50 percent in recent times. Trump Corp. owns 1.6 million sq. m. of real estate in Manhattan, including such properties as International Hotel & Tower, Trump Tower, Trump World Tower and 40 Wall Street. Forbes estimates the corporation’s owner, Donald Trump, Sr., to be worth $2.9 billion. The corporation also owns the Trump Taj Mahal casino, Trump Plaza, Trump Marina and 28 percent of Trump Entertainment Resorts. Trump also co-owns the Miss USA, Miss Teen USA and Miss Universe beauty pageants jointly with NBC television network.
Trump attempted to enter the Russian market four years ago. Trump representatives entered into negotiations with Moscow city authorities on the possible participation of Trump Organization in the reconstruction of the Moskva and Rossiya hotels. In the United States, the Trump name adds 20-30 percent to the value of an object. In Russia, the name is known only to a narrow segment of the public and would add value to objects targeted to a business audience.
www.kommersant.com
All the Article in Russian as of June 04, 2008
|
