Donald Trump, Trump Organisation

Friday 16th January 2009

The man who gave us 'you're fired', controversial Scottish seaside resorts and gold-festooned towers in the centre of Manhattan, Trump rarely does things by halves

Name: Donald John Trump
Company: Trump Organisation
Industry: Real estate
Net worth: $3bn
Income: $32m
Education: New York Military Academy/Wharton School, University of Pennsylvania
Previous appointments: Varsity Baseball captain (1964)
First job: Joined his father’s business, the Trump Organisation, in 1968
Big break: Aged 18, ditches plans to enroll in Film School and moves into real estate

If there was a single, ageing entrepreneur capable of creating the world’s biggest course in Scotland, it would be Donald Trump.

Born on June 14, 1946, he is CEO of the Trump Organisation, a New York based real estate business started by his father, Fred Trump.

Trump junior joined the company after graduating from Wharton School at the University of Pennsylvania in 1968. He soon showed he had the skills to be a success in real estate.

One of his first triumphs involved securing a 100 percent tenancy rate for a vast apartment block owned by his father. The company made $6m profit when the site was sold for £12m. He then renovated the Commodore Hotel into the Grand Hyatt by making use of a 40-year tax abatement approved by the cash strapped New York City government.

He quickly expanded into airlines, casinos and other businesses, but his greatest challenge was to come during the 1990s following the economic downturn. Trump was unable to meet loan payments following his rapid expansion. Increasing debts in 1991 led to business bankruptcy.

The Trump Plaza Hotel files a prepackaged bankruptcy protection plan on November 2, 1992. He ceded a 49 percent stake in the luxury hotel to six lenders in return for improved terms on more than $500m debt. He retained his position as chief executive, though agreed to take no salary and had no direct management role.

His rise from the brink of ruin was remarkable.

By 1994, Trump had almost totally reduced $900m personal debt and well as nearly $3.5bn in business debt, while holding on to Trump Tower in New York City and control of his three casinos in Atlantic City.

In 1995, he combined his casino holdings into the publicly held Trump Hotels and Casino Resorts. Its stocks rose on Wall Street above $35 in 1996, although by 1998 the company went into decline showing poor profits and nearly $3bn in debt.

The company applied for Chapter 11 Protection in November 2004, but the overwhelming success of many other ventures saw Trump's fortunes rise. His wealth was estimated at $3bn in the Forbes 400 issue, October 7, 2007.

His star is on the Hollywood Walk of Fame, he received an honor for his contribution to the TV show The Apprentice and he is part owner of the Miss Universe Organisation.

First and foremost, Trump is a businessman who understands how to make capital out of property. His latest plan involves spending £1bn on ‘world's greatest golf course’ on a resort north of Aberdeen.

Article tools

Comment

Free RSS feed

Not yet rated

Special Report

A man for three seasons

Berlusconi is back for the third time, sending affectionate kisses to Italians in his victory speech and promising to revive Italy's ailing economy and slash taxes. But of course, as many Italians will tell you, they have heard it all before...