Donald climbs off the deck; profile

An inspired gamble has resurrected the fortunes of New York's most colourful property magnate.

The Donald is back. And it's not just the New York gossip pages that are paying attention these days. The respectful columns now appearing in the business sections are a more reliable indicator of his recovery from a spectacular crash six years ago. We are speaking, of course, of Donald Trump, the property and gambling tycoon who gave gaudy a new meaning.

True, Trump is not the mighty player he once was. On most days at New York's La Guardia airport you can spot parked close to the perimeter the shiny black Boeing 727 airliner that is his own private jet (replete inside with red velvet armchair seats and chocolate-box oil paintings). The fleet of planes that used to make up the Trump Shuttle has long gone. Nor can he any longer call the luxury Plaza Hotel in Midtown his own.

But if the Donald Trump of the Nineties is not the extravagant model of a decade ago, he is diminished only in relative terms. A reminder of his new-found confidence came with the unveiling last week of a characteristically ambitious plan to offer new digs to the New York Stock Exchange. The NYSE has admitted that it would like to abandon its landmark Renaissance home on the corner of Wall Street and Broad Street, which has grown too cramped and dilapidated.

Trump's proposal is a stunner. His complex would include a 250,000 square foot pavilion that would house the NYSE's new trading floor and an adjacent tower that would soar 1,792 feet into the Manhattan skyline, making it the biggest occupied building in the world, 424 feet taller than the towers of the World Trade Center. It would also dwarf the Petronas Towers in Kuala Lumpur, which, at 1,476 feet, recently claimed the title of the world's biggest building.

The comeback offers a new volume in what was already an extraordinary life story. Recently turned 50, a teetotaller and non-smoker, Trump was born with property business in his veins - as well as some feisty Scottish spirit. The latter came from his 87-year-old mother, Mary MacLeod Trump, a native of Isle of Lewis in the Hebrides. When, a few years ago, she was admitted to the emergency unit in a New York hospital after a mugging incident, nurses and doctors were baffled by her semi-conscious speech. It transpired that in her anguish she had reverted to speaking in Gaelic.

Mary met Fred Trump, Donald's father, during a holiday in New York just after World War One. She later returned to marry him, and the young couple quickly built a rental empire in New York's outer boroughs of Brooklyn and Queens. A milestone of their success was the introduction of the first coin-operated laundry facilities inside their apartment blocks. Friends have often said that Donald derives his energy and enthusiasm for mega-buck deals partly from a need to outstrip the achievements of his millionaire parents.

Less sympathetic critics would point to the scale of his ego as the principle motivator of his ascent to become, by the mid-Eighties, New York's most opulent and talked- about property magnate. His assets ranged from the Trump Tower on Fifth Avenue - which housed (and still does) his private triplex apartment - the Plaza, the airline, a $10m (pounds 6.5m) mansion in Palm Beach, Florida, a luxury private yacht, the Trump Princess, and the Grand Hyatt in New York.

In 1989, Forbes Magazine estimated Trump's personal worth at $1.7bn. He was also the husband of the super-glamorous Ivana and father to their three children, Donny, Ivanka and Eric. Adding to the legend were stories of impulsive generosity - one such (probably apocryphal) tale had him paying off the mortgage of a stranger who helped out when his limousine broke down in open country - as well as his Howard Hughes-like phobia of catching germs and consequent obsession with washing his hands when among the public.

Still more dramatic, however, was his subsequent tumble into financial and marital mayhem. The saga of how Marla Maples, the blond model, slowly displaced Ivana from Donald's bed (the "best sex I have ever had" she famously said of his bedroom performance) became this city's tabloid obsession for half a decade. Donald and Ivana were divorced in 1990 (she making off with $10m and his Connecticut mansion). Marla produced a child in the summer of 1993 and finally spliced with Donald in December of that year.

His financial nadir came at the turn of the decade. Massively over-extended with loans and caught by the spiralling decline of New York property values, Trump found himself at the mercy of a consortium of banks that was threatening to seize his every asset, from the Manhattan properties to his Atlantic City casinos. His personal debts totalled almost $1bn and the consensus emerged that he, like the other icons of the runaway Eighties, Ivan Boesky and Michael Milken, was finished. Another Trump myth describes him spotting a beggar one lunchtime outside the entrance to the Plaza. "That bum isn't worth a dime, but at least he's at zero," the fallen tycoon is alleged to have remarked to an adviser. "That puts him $900m ahead of me."

Guided by Stephen Bollenbach, who was hired from Holiday Corp in 1990 to be his chief financial officer, Trump set about his resurrection. Assets were quickly disposed of, including the East Coast Trump Shuttle that was sold to USAir. (The Plaza was sold more recently, although Trump still retains a 10 per cent interest.) Meanwhile, he launched a relentless campaign to win back from the banks his equity in his Atlantic City casinos. It was a battle he eventually won in part because he, not the banks, had the hard-to-get gambling licences to operate in New Jersey as well as the familiarity with the murky culture of the gambling world that most bankers would naturally shy away from.

With his bet on Atlantic City, Trump essentially saved himself. The seaside resort, within driving distance of Philadelphia and New York, now takes in $3.7bn annually in gambling revenue, 20 per cent more than the better- known strip in Las Vegas. With his three Atlantic City casinos - the Trump Plaza, the Trump Castle and the Taj Mahal - Trump accounts for almost a third of those takings. "It was all luck," he conceded. "I could have been wrong. But I was right."

Trump's resurrection matured with a public offering of shares in his company, Trump Hotels and Casino Resorts, in June last year. He now holds almost 40 per cent of the company and he is enjoying new-found personal wealth - his net worth is estimated at least $700m. His old thirst for trophy properties wholly owned by himself has given way, meanwhile, to a strategy of franchising his brand name to projects financed by others. No one is laughing now at anything Trump proposes. "Why not?" asked New York analyst Marvin Roffman, at Roffman Miller Associates in New York. "He literally came back from the dead in 1990. He is the king of Atlantic City."

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Recruitment Genius: Technical Report Writer

£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...

MBDA UK Ltd: Indirect Procurement Category Manager

Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...

Day In a Page

Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee
World War Z author Max Brooks honours WW1's Harlem Hellfighters in new graphic novel

Max Brooks honours Harlem Hellfighters

The author talks about race, legacy and his Will Smith film option to Tim Walker
Why the league system no longer measures up

League system no longer measures up

Jon Coles, former head of standards at the Department of Education, used to be in charge of school performance rankings. He explains how he would reform the system
Valentine's Day cards: 5 best online card shops

Don't leave it to the petrol station: The best online card shops for Valentine's Day

Can't find a card you like on the high street? Try one of these sites for individual, personalised options, whatever your taste
Diego Costa: Devil in blue who upsets defences is a reminder of what Liverpool have lost

Devil in blue Costa is a reminder of what Liverpool have lost

The Reds are desperately missing Luis Suarez, says Ian Herbert
Ashley Giles: 'I'll watch England – but not as a fan'

Ashley Giles: 'I'll watch England – but not as a fan'

Former one-day coach says he will ‘observe’ their World Cup games – but ‘won’t be jumping up and down’
Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

Greece elections

In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
Holocaust Memorial Day: Nazi victims remembered as spectre of prejudice reappears

Holocaust Memorial Day

Nazi victims remembered as spectre of prejudice reappears over Europe
Fortitude and the Arctic attraction: Our fascination with the last great wilderness

Magnetic north

The Arctic has always exerted a pull, from Greek myth to new thriller Fortitude. Gerard Gilbert considers what's behind our fascination with the last great wilderness