Trump Tower Project on Australia's Gold Coast Canceled Over Brand Toxicity

An AI-generated image showed a gleaming Trump-branded tower rising near the shoreline in Surfers Paradise on Australia's Gold Coast. Couples lounged by a fire pit and under awnings as waves lapped nearby, promising an ultra-luxury address in the global Trump portfolio.

The website and image are gone now. The $1.1 billion Trump International Hotel and Tower project is dead.

David Young, CEO of Australia's Altus Property Group and the developer, said the war in Iran made the Trump brand too toxic to Australians for the project to proceed.

The Trump Organization fired back, accusing Young's company of failing to meet basic financial obligations. A spokesperson called Young's reference to world events a ploy to distract from his own defaults and failures.

In February, Eric Trump posted the AI image of the proposed tower in the seaside resort, calling it soon to be Australia's tallest building. Young shared a photo of himself shaking hands with Eric Trump and said the 91-story project, 19 years in the making, would cost about $1.1 billion.

Less than three months later, the deal collapsed with blame on both sides.

In a statement to the BBC on Tuesday, Young wrote, "Let's just say that with the Iran war and everything else, the Trump brand was increasingly toxic in Australia." He rejected claims that Altus had not met financial obligations and said on LinkedIn the company would continue the project without the Trump name.

The Trump spokesperson told CBS News the organization had been very excited but the deal fell through after months of empty promises. "Mr Young's attempt to blame certain world events for our termination of the agreement is merely a ploy to distract from his own defaults and failures."

In a lengthy LinkedIn post Tuesday, Young called it grossly unfair that recent events had tarnished the Trump brand, which has nothing to do with the president. He said there was no acrimony between him and the Trump family and described the decision as pure business.

Gold Coast Mayor Tom Tate, who met President Trump and Eric at Mar-a-Lago before the announcement, told the Australian Broadcasting Corporation no development application was filed. He said neither side was happy with profit margins and it was all about the money.

Australia's ABC reported Young had declared bankruptcy twice. Altus did not immediately respond to CBS News.

A petition by Gold Coast residents against the project, citing discomfort with the Trump brand and what it represents, had at least 140,000 signatures by Wednesday.

On Monday, Eric Trump posted another AI image of a Trump Tower in Tbilisi, Georgia's capital. He said it would be the tallest building there and that they were excited to bring it to life.