The proposed Trump Tower on the Palm Jumeirah, a Dh2.9 billion (US$800m) project announced earlier this year, has been suspended, says the Australian construction firm contracted to build it, according to The Australian newspaper. Citing "easing market conditions," the Australia-listed Leighton Holdings said today the project was on hold, and that Nakheel, the developer, had agreed to cover all costs incurred to date, paper said.
The tower was to be a centerpiece of the Palm Jumeirah project. In June a buyer offered $3,000 per square foot, or close to $30m for a penthouse in the development, more than twice the going rate of Dubai's next most expensive properties. This follows last week's announcement by Trump Entertainment Resorts that it would miss a $53.1m bond interest payment due on Dec 1, in an effort to "maintain sufficient liquidity."
Trump Entertainment, chaired by property magnate Donald Trump, was created out of a bankruptcy restructuring in 2005. At the same time Deutsche Bank said it would sue Mr Trump over the developer's troubled Chicago condominium and hotel project, according to the Wall Street journal. The bank says Mr Trump personally owes $40 million after defaulting on a $640 million construction loan for Trump International Hotel & Tower under construction in the windy city.