The Cluj-Napoca City Hall’s Urbanism Commission has approved the first Trump Tower in Romania, which will be part of the Transylvania Smart City real estate project. Trump’s plans in Transylvania have drawn attention from the American press, which reports on the challenges faced by the businesses of the US President in our country.
The documentation was presented at the March 19 meeting, and the project includes collective housing, educational units, and a 30-story hotel tower, as reported by Actual de Cluj.
The project submitted by the Cluj-based company was presented last year in Cannes under the name "Trump International Cluj-Napoca." The ensemble will include residential towers of about 10 floors, a shopping center, and a 30-story hotel tower, the central element of the investment. Eric Trump, the son of US President Donald Trump, is also involved in the project through The Trump Organization, as officially communicated by the American company.
The land is located in an area considered strategic for development, near the Avram Iancu International Airport, Cluj-Napoca Est railway station, and the Traian Vuia and Platanilor roads.
Boc: These projects are not made for 10 years, but for centuries
Mayor Emil Boc expressed support for the project. "I am not against towers in Cluj. We already have a good example at the entrance from Florești. These projects are not made for 10 years, but for centuries. The areas that now seem peripheral will become semi-central in 50 years, maybe even in 30 years," said Emil Boc.
The entry of the American brand TRUMP into the Romanian market is carried out through the Cluj company SDC Imobiliare.
The project carried out in Cluj-Napoca is just one component of the business that The Trump Organization aims to develop in Romania. The main objective announced in an official statement also involves the construction of a residential complex in Bucharest (Băneasa area), as well as a hotel (Trump Tower Bucharest) in the central area of the capital, as reported by the local publication.
"The official debut of the Trump brand in Romania reaffirms The Trump Organization's commitment to its global strategy of expanding its portfolio of luxury residential, hotel, and golf projects, in line with its international growth direction," as stated in the official communication of The Trump Organization.
A huge landfill stands in Trump's way
The New York Times also writes about Trump Organization's plans in Romania.
According to the American newspaper, the US President's company has another project, which has not yet been made public: the Trump organization has selected a location for a golf course and luxury apartments near one of the largest landfills in the region.
The project is expected to revive a real estate business stalled in the city of Cluj, affected by government corruption. It would put Trump's name on a complex of luxury apartments and a golf course not far from a place where Roma people have been practically exiled near toxic medical waste, writes the American newspaper.
"We are incredibly excited about our projects in Bucharest and Cluj, marking our first initiatives in Romania," said a spokesperson for The Trump Organization, referring to the already announced plans for a Trump Tower in the capital. "The Trump Organization looks forward to bringing truly iconic buildings to these great cities - buildings that will reflect the highest standards of design and quality, while redefining the dynamic skyline of each city at the same time."
Who is working in Romania for Trump's company
Real estate transactions can fail, as in the case of the Trump Tower project in Belgrade, which was closed last year due to a corruption investigation. However, the company's interest in Cluj seems undeterred by the unfavorable location or the challenges related to permits, notes the American newspaper.
To navigate the thorny bureaucracy and local politics, The Trump Organization is working with two partners.
The first is the local developer SDC Properties, which has started to request permits. Ștefan Berciu, the company's director, stated in an interview that contracts have been signed, and the Trump family will soon announce the details.
The second is Avram Gal, a Romanian political agent who has helped facilitate parts of the agreement and has a profile similar to that of Trump himself. Gal opened a steakhouse specializing in promoting "the most expensive burger in Romania" - a sandwich adorned with gold leaf that was sold for 6,200 euros. As the leader of the local PSD organization, he has advised several high-ranking Romanian officials.
According to the Cluj publication, Avram Gal was an advisor to Minister of Development Ion Ștefan, and previously advised Minister of Defense Sorin Leș and Minister of Internal Affairs Cristian David.
In 2020, Avram Gal was indicted by the DNA for influence peddling. He allegedly requested around 600,000 lei from a company representative to influence officials of a national company to purchase COVID-19 protective equipment from that company. Gal reportedly received over 370,000 lei and various goods.
He clarified to NYT that he is involved in the real estate project in Cluj as a friend of the Trump family, not as a consultant.
How did Trump end up investing in Romania
Several individuals take credit for attracting investments from the American presidential family to Romania. Some attribute the success to Trump's high popularity in Romania. In a recent Gallup International poll, over half of the respondents had a favorable opinion of the US President.
Business plans in Romania began to take shape at the dawn of Trump's second term in the White House. Berciu flew to Washington for the US President's inauguration ceremony. Gal was also present, and from the stands, he posted videos promoting herbal teas for weight loss, according to the cited newspaper.
Gal and Berciu attended Trump's inauguration ball. Subsequently, they traveled to Mar-a-Lago to meet with Eric Trump, the President's son, who heads The Trump Organization.
A mountain of garbage and interests
The New York Times writes that the proposed location for the investment in Cluj is "over four hours by car northwest of Bran Castle, the picturesque tourist destination better known as Dracula's Castle."
The makeshift settlement of Roma people, called Pata Rât, has expanded over decades. Authorities forcibly moved families there, and residents spend their days rummaging through the landfill in search of valuables, according to the American daily.
Today, it is estimated that 3,000 people live in Pata Rât. The smell of garbage is strong there, especially in the summer. Up on the hill, where packs of stray dogs now roam and where a military base is located, the golf course and luxury apartments bearing the Trump logo are supposed to rise.
The land is still in dispute in court, and environmental and urban planning issues have been dragging on for years. Activists say that developers have ignored these issues for years.
"They are trying to sell illusions to people. They show the glass buildings, but they don't show the ghetto or how close it is to the landfill," said Alex Fechete, a housing activist representing members of the Roma settlement for NY Times.
Disputes among former associates
Not only does the chosen location for real estate development raise questions about the project's fate, but so do the legal disputes.
Adrian Gurzău, a former Romanian politician convicted of corruption, stated that around 2022, he devised a plan to build on that land. At the time, he considered constructing a commercial and residential complex with a heliport and a funicular connection to the airport. He recruited Berciu from SDC as a partner and discussed whether there was enough demand for a golf course or if a zip line or adventure park might be more suitable.
Gurzău says that back then he suggested involving the Trump family in the project. "For a building like this, you need the cherry on top. Branding that makes it shine," he said in an interview. However, the site was exposed to the risk of landslides. "But we had information from environmental authorities that the only impact of the landfills was the unpleasant smell," Gurzău said.
The investors bought, and the construction teams laid the foundation for the first building of what was supposed to be the Transylvania Smart City.
But shortly after, prosecutors opened a corruption investigation targeting this project. And in 2023, a former Romanian minister associated with the project was convicted of bribery and money laundering. The site soon became almost abandoned.
While Gurzău was dreaming of a Trump project, a Romanian who was then part of the board of directors of Trump Tower Chicago helped kick things off. Onisim Dorneanu said he contacted the Trump Organization in 2023 and suggested a project in Cluj.
Later, Dorneanu sued the Trump Organization, claiming they defrauded investors from Chicago. He says he has no connection to the transaction with Romania.
And Gurzău is involved in a legal battle over the land targeted by the Trump family. He claims that Berciu, his former partner, excluded him from the project due to a disagreement over debts and teamed up with the Trump family.
Berciu stated that the project will only proceed on land where the ownership title is undisputed. "Trump can't afford it, and neither can we, to build on others' lands," he said.