How absurd to say Donald Trump's estate is only valued at £14m

How absurd to say Donald Trump’s estate is only valued at £14m! Property entrepreneur NICK CANDY argues this ruling by a New York judge is like saying Windsor Castle is worth the same as a house in Mayfair

The first thing that struck me, walking into Donald Trump’s opulent Mar-a-Lago resort in April last year, was how much ‘wow factor’ the place has.

It must be one of the most unique and extraordinary properties in America. Each room is decorated exquisitely in the Mediterranean style with elegant craftsmanship, ironwork, sculptures and antiques. There are gilt-carved ceilings, towering chandeliers while Spanish tiles adorn the floors and walls.

My wife Holly and I, who had been invited with Nigel Farage to dine with the ex-president, couldn’t fail to be mesmerised. And as a luxury property developer, I’ve seen my fair share of impressive real estate across the globe.

The 62,500-sq-ft Florida mansion, set in 17 acres, is a National Historic Landmark, having been built in the 1920s for socialite Marjorie Merriweather Post, then America’s wealthiest woman. She spent $7million on it – equivalent to about $120million (£98 million) today.

So I find it utterly baffling that the judge in Trump’s current civil fraud trial in New York has valued the estate at between $18million and $27million. I had to look twice to be sure a zero wasn’t missing.

Donald Trump’s Mar-a-Lago resort must be one of the most unique and extraordinary properties in America

Trump’s current civil fraud trial in New York has valued the estate at between $18million and $27million

Based on average prices on Palm Beach, this value is like saying Windsor Castle is worth £14million – or the equivalent of an average house in Mayfair. It’s ludicrous, and makes a mockery of the US judicial system

The valuation was made by Justice Arthur Engoron on the advice of a Palm Beach County Official as part of the case Trump is convinced has been brought by his detractors to try to frustrate his 2024 Presidential election bid.

The court heard claims from the office of New York Attorney General that the former president had defrauded banks by overvaluing properties by millions of dollars to fraudulently obtain benefits based on his ‘grossly exaggerated’ net worth and assets. 

If there’s one thing I can sniff out a mile away, it’s a bad property valuation – and this has to be one of the worst. I may have left KPMG as a failed accountant in 1997 but I know these numbers stink to high heaven.

Palm Beach is the most expensive real estate market in the US. The average sale price for a sweeping, palm tree-fringed mansion in 2021 was $8.7million. And not one of those fairly ordinary family homes can touch the prestige of Mar-a-Lago, which comes with one of the best golf courses on the planet, with memberships costing $200,000 a year. As one real estate agent said: ‘It’s in a completely different league of its own.’

It’s like saying Windsor Castle is worth £14million – or the equivalent of an average house in Mayfair. It’s ludicrous, and makes a mockery of the US judicial system. 

In his initial ruling, Judge Engoron stated that Trump, his two elder sons and several of their companies were liable for ‘persistent fraud’, which may have pocketed them savings of $100million. 

If found guilty, he faces a penalty of $250million and a ban on operating businesses in the state. For his part, Trump says Mar-a-Lago is worth $426million. Whatever the truth, he paid a bargain price when he scooped it up for $5million during a property slump in 1985.

If found guilty, Trump (pictured with wife Melania) faces a penalty of $250million and a ban on operating businesses in the state

The house was designed by American architect Marion Sims Wyeth and was famous for hosting concerts, costume balls and circuses. In 1969, it was designated a National Historic Landmark and a report by the Department of the Interior attributed its significance for providing ‘an excellent picture of winter resort life in Palm Beach prior to the Depression’. 

Marjorie Merriweather Post left the property to the US Government as a ‘winter White House’ retreat for presidents but neither Richard Nixon or Jimmy Carter used it and the house was returned to private ownership in 1981. It was then bought by Trump, who paid an additional $3million for Post’s antiques and furniture.

Two friends of mine offered about $750 million to Trump to buy Mar-a-Lago. Both were turned down. In truth, it’s probably worth around £1billion. As a comparison, Ken Griffin, CEO of Citadel bank, has spent $450 million assembling a 25-acre estate a quarter of a mile south of Mar-a-Largo. Valuation is based on comparable data and facts. But of course Justice Engoron’s valuation isn’t about money – it’s all politics.

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