Gold Coast Trump Tower Developer Unreachable After Business Collapse
The developer behind a proposed Trump Tower on the Gold Coast has been largely unreachable following a major business collapse that left creditors owed $28 million. David Young, associated with Altus Property Group, has not provided essential financial information after his company went under in 2010, according to a liquidator’s report.
Unfulfilled Promises and Financial Troubles
Young’s ambition included a $1.5 billion, 91-storey luxury complex in Surfers Paradise. This project claimed to represent the tallest building in Australia. Young had announced a deal with the Trump Organization, gaining attention from Eric Trump, who praised the development publicly.
- Project Cost: $1.5 billion
- Height: 91 storeys
- Location: Surfers Paradise
Despite the grand plans, Young had a history of financial issues. His previous company, Young Land Corporation, had reportedly ceased operations in 2010. A liquidator’s report highlighted that Young was mostly “uncontactable” during the liquidation process, raising concerns among creditors.
Liquidation Findings and Creditor Claims
The liquidator revealed numerous unpaid creditors. Key claims included:
- LM Investment Management: $27 million
- Australian Taxation Office: $374,237
- APN Outdoor: $400,000
- Cardno: $18,957
The liquidator made efforts to locate Young to fulfill his obligations but faced difficulties. His initial contact provided limited cooperation, leading to a request for assistance from the Australian Securities and Investments Commission (ASIC). However, ASIC was unable to find Young for further action.
Bankruptcies and Insights from Previous Experiences
David Young has faced bankruptcy multiple times. His first bankruptcy in 1991 was linked to a joint venture with Castlemaine Perkins. The second occurred in 2010 alongside the collapse of his company, Young Land Corporation. These experiences led Young to evaluate his past, acknowledging that excessive debt contributed to his financial struggles.
New Endeavors with Altus Property Group
Young has since established Altus, which is leading the Trump Tower project, with financial backing from international private investors. Despite earlier economic challenges, he claims to have secured funding without the urgency common with Australian banks.
Industry experts note that while demand for hotels is returning post-COVID-19, construction costs remain a significant barrier for new projects in Australia. Karen Wales from Colliers stated that high costs could hinder many developments, despite demand trends indicating potential growth.
Community Reactions and Future Prospects
The Trump Tower project is marketed as a luxury investment opportunity, but some local residents express hesitancy about the Trump brand. Young faces significant challenges ahead, needing to prove his business viability amidst a tumultuous financial background and wider industry concerns.
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