Trump-branded 70-storey tower planned on land linked to Georgia’s ruling family — what buyers must know

Trump Tower in Tbilisi: a high-rise plan that instantly raises questions

The announcement that a 70-storey Trump Tower will be built in central Tbilisi lands squarely in the middle of debates over the real estate Georgia market. Within days of the Trump Organization confirming the project, critics pointed to ownership records showing the development site is controlled in part by the Cartu charity, linked to the family of Bidzina Ivanishvili — the Georgian billionaire who was placed under US sanctions in 2024. This is a project that promises to reshape Tbilisi’s skyline and test how investors assess political risk when buying into high-profile branded developments.

In this article we explain the facts, parse the ownership and legal complications, and give practical advice for buyers and investors watching the real estate Georgia market.

What the developers have announced

• The project is a 70-storey skyscraper described in a Trump Organization press release as a mixed-use development set to be the tallest building in Georgia.
• The Trump Organization is partnering with a consortium of local firms: Archi Group, Biograpi Living, Blox Group, Finvest Georgia, and the US-based Sapir Organization. The Trump Organization’s management is handled by the president’s sons, Donald Trump Jr and Eric Trump.
• The local vehicle named in public filings as the prospective developer is Central Park Avenue LLC, which signed a preliminary purchase-and-sale agreement for the site in October 2023.

These are the headline items. But the project’s backdrop — ownership of the land and political connections — is what has intensified scrutiny.

Who owns the land and why that matters

The plot earmarked for the tower was a Soviet-era hippodrome in central Tbilisi. Official records show the land is associated with the International Charity Fund Cartu, which in turn is owned by Cartu Group JSC. Public filings list Uta Ivanishvili — eldest son of Bidzina Ivanishvili — as holding 35% of Cartu Group JSC.

Key figures from public records and statements by the developer’s lawyer:

• 511,880 sq m was the total landholding owned by the Ivanishvili family on the former racecourse site, according to a lawyer for Bidzina Ivanishvili.
• 431,735 sq m was donated by Bidzina Ivanishvili to the state for a public Central Park project.
• A preliminary agreement covers 80,000 sq m remaining for sale; 9,645 sq m of that has already been transferred to Central Park Avenue LLC.
• The remaining transfers are conditioned on payment of the purchase price.

Why this is legally sensitive for investors:

• Cartu Group JSC formerly listed Uta Ivanishvili as a 100% owner until 2024, when his stake fell to 35% after his father was sanctioned by the US.
• The current ownership of the remaining 65% of Cartu Group JSC is opaque. Georgian corporate rules allow individual holdings under 5% to remain anonymous, which means beneficial owners behind the balance cannot be readily identified from public registries.

In short: title and beneficial ownership for the plot are not fully transparent. That changes how a prudent buyer or lender should approach contracts, escrow arrangements, and warranty clauses.

Political context and sanctions — the practical implications

Bidzina Ivanishvili, the family patriarch, was sanctioned by the US in 2024 on grounds that the US stated he had been "undermining the democratic and Euro-Atlantic future of Georgia for the benefit of the Russian Federation." That step has immediate consequences for cross-border commercial relationships.

From the filings and public statements it follows that:

• Uta Ivanishvili is not sanctioned personally.
• Under US sanctions rules, US persons are generally prohibited from conducting business with the sanctioned individual directly; the rules also include an exemption relating to businesses controlled by a sanctioned person, which can complicate compliance analysis for US-based partners and lenders.
• The Trump Organization has previous franchise and development arrangements with international partners that have raised similar questions; the White House has stated that "neither the president nor his family" have "ever engaged, or will ever engage, in conflicts of interest." That assertion does not remove the need for legal risk assessment by private investors.

Transparency International Georgia and other anti-corruption voices have called out three concrete concerns:

• the involvement of business figures with past ties to the ruling Georgian Dream party;
• the fact that the land remains registered to a charity linked to the Ivanishvili family; and
• the way state-friendly media present the transaction as a political triumph for the ruling party.

We view these criticisms as relevant to investor due diligence rather than conclusive proof of wrongdoing. But they do change how international buyers and lenders should structure protections.

Who are the partners, and what are their records?

The development partners as reported are:

• Trump Organization (brand owner and franchisor; project promoted in an April press release)
• Sapir Organization (US-based long-time Trump partner)
• Georgian consortium: Archi Group, Biograpi Living, Blox Group, Finvest Georgia

Notes on those partners from public sources:

• Archi Group’s founder, Ilia Tsulaia, previously served as a Member of Parliament for the Georgian Dream party.
• Biograpi Living is part of the Wissol Group, owned by Soso and Levan Pkhakadze; their public silence during political crises in Georgia has been remarked upon in local media.
• None of these Georgian firms is currently under US sanctions.

For investors this matters because joint-venture partners determine project execution capability, access to local approvals, and political navigation. A partner with government access can speed permitting, but the same access can tie the project to political cycles and reputational risk.

Market impact: what a branded megaproject could do to Tbilisi real estate

A Trump-branded 70-storey tower in the center of Tbilisi is not merely a monument; it is a potential market mover. Here is what to expect and watch for:

• Luxury pricing pressure: a high-profile branded tower tends to push premium pricing in the immediate neighborhoods for new condo launches and resale stock.
• Increased foreign interest: branded projects draw attention from international buyers who seek name recognition, often raising demand in the luxury segment.
• Short-term construction demand: major projects create jobs and contracted capacity in construction and interior fit-out sectors, which can lift local incomes and demand for high-end services.
• Planning and supply effects: if the project triggers zoning changes or infrastructure upgrades, it can alter land values nearby.

But there are countervailing dynamics:

• Political backlash could cool foreign interest if buyers worry about sanctions or controversy.
• Oversupply risk in the luxury segment is real if developers misjudge demand and multiple high-end projects proceed simultaneously.
• Financing volatility: international banks and investors will examine sanctions exposure and may decline to take on political risk without higher returns.

In our view, short-term uplift in luxury housing prices is plausible, but long-term value will depend on delivery certainty and clear, transferable title for units.

Practical risks for buyers and lenders

Investing in units in a development like this is not the same as buying an existing apartment. Specific risks include:

• Title risk: until the remaining 80,000 sq m is duly transferred and the purchase price paid, ownership across parts of the plot remains unsettled.
• Beneficial ownership opacity: the unknown 65% of Cartu Group JSC ownership introduces potential exposure to sanctioned individuals or hidden stakeholders.
• Reputational risk: buyers and lenders may face negative publicity if they are associated with a project tied to a sanctioned family.
• Regulatory risk: local zoning or planning approvals could be challenged in courts or through administrative processes.
• Sanctions spillover: although Uta Ivanishvili is not sanctioned, the connection to a sanctioned figure could trigger conservative compliance assessments by US banks and investors.
• Political risk: the project is being presented by the ruling party as proof of confidence in Georgia; opposition or civil society could push for investigations or block approvals.

For lenders, these translate into:

• tighter covenants on title and escrow conditions;
• requirements for enhanced due diligence on ultimate beneficial owners (UBOs);
• insistence on completion bonds or international guarantees; and
• pricing that reflects political risk.

For private buyers, the immediate practical protection is to insist on escrowed deposits, warranties on good and marketable title, and contractual clauses that allow exit if the developer cannot deliver clear title on completion.

Due diligence checklist for prospective buyers and investors

If you are considering exposure to this project or any high-profile branded development in Georgia, our recommended checklist includes:

• Confirm the legal status of the plot: check the registry for any charges, encumbrances, or pending transfers for the 80,000 sq m parcel.
• Demand full UBO disclosure for Cartu Group JSC and Central Park Avenue LLC; push for a written representation about sanctions exposure.
• Insist on escrow arrangements for purchase funds that only release on clear title transfer and on building completion milestones.
• Seek independent title insurance where available, and verify what is covered given potential political claims.
• Evaluate the joint-venture agreement and brand/franchise contract: who bears completion risk, who guarantees construction quality, and who retains responsibility for defects?
• Stress-test exit scenarios: secondary market liquidity could be thin if controversy deepens; consider buy-back clauses or developer guarantees.
• Review local planning approvals: are permits final or conditional, and are any appeals outstanding?
• Assess financing sources: international banks may require enhanced compliance checks; local lenders may offer easier terms but less international credibility.

These are standard protections on projects with opaque ownership and elevated political sensitivity.

How international buyers should approach the opportunity

We do not recommend reflexive avoidance. High-profile branded projects can produce strong returns, but they require higher scrutiny. If you are an international buyer or investor considering units in this Trump-branded development, ask these strategic questions:

• Do I need the brand to meet my investment case, or would a non-branded comparable deliver similar returns with less risk?
• Am I prepared to hold until market sentiment stabilises if controversy affects short-term resale values?
• Will my bank or mortgage provider accept the project's risk profile, and what conditions will they impose?

If your answer to any of the above is uncertain, treat any pre-completion contract as provisional and negotiate robust protections.

Why this matters beyond Georgia

This project illustrates a growing theme in global real estate: branded developments and internationally visible projects increasingly intersect with geopolitics.