The skyline of Belgrade is on the verge of dramatic transformation, as plans for a new luxury complex—dubbed Trump Tower—move forward on the historic site of the former General Staff headquarters, a building scarred by the 1999 NATO bombing. The ambitious project, set to be completed within eight years, is the result of a joint venture between the Serbian government and Atlantic Incubation Partners LLC, a company closely linked to Jared Kushner, son-in-law of former U.S. President Donald Trump, according to Forbes Serbia and Radar.
Details of the secretive agreement, which have recently come to light, reveal a complex web of contracts, obligations, and legal maneuvers that have stirred both excitement and controversy in Serbia. At the heart of the deal is a 99-year land lease on the bombed-out General Staff site, with the possibility for the land to eventually become the property of the private investor. The project is valued at approximately 500 million euros and will see the construction of three towering structures—each 30 floors high and up to 135 meters tall—housing 1,500 apartments, a hotel, a museum, retail spaces, and vast underground parking.
Under the terms of the joint venture, the strategic partner—represented by Kushner's company—will hold a commanding 77.5 percent share, with Serbia retaining 22.5 percent. The initial capital for the joint company is a modest 10,000 euros: Kushner's side will contribute 7,750 euros, while Serbia will provide 2,250 euros. This distribution of shares dictates the voting rights and dividend allocations for both parties. The Supervisory Board, responsible for appointing the director and approving key decisions like apartment pricing and hiring subcontractors, will consist of two representatives from the strategic partner and one from Serbia.
Financing for the project is expected to come from a blend of client revenue—including apartment sales—bank loans, and direct loans from the strategic partner. Notably, Serbia is not obligated to provide any financing, a model reminiscent of the Belgrade Waterfront project, which also involved a foreign developer and a similar division of responsibilities.
But the financial arrangements are just the tip of the iceberg. The agreements, as reported by Forbes Serbia, contain a host of provisions that grant the strategic partner significant discretion. For example, the partner can change the project design without an architectural competition and assign the contract to affiliated companies without Serbia's consent. The design plans indicate that the new towers will nearly envelop the preserved Old General Staff building, which will be protected from demolition. The project aims to maximize the use of available land, with the buildings set just 10 meters from the street and a total internal area of up to 280,000 gross square meters.
One of the most contentious aspects of the contract is Serbia's obligation to declare the project of special national importance within 21 days of signing and to remove all legal and cultural protections from the site—a move that has drawn sharp criticism from environmental and heritage groups. The demolition of the former General Staff building, including parts under cultural protection, must be completed by May 2026. Failure to meet these deadlines could allow the American partner to terminate the contract and collect up to 50 million euros in damages from the Serbian budget, Radar reports.
Environmental activists have been particularly vocal. The group Ecological Uprising has publicly demanded that President Aleksandar Vučić and the Serbian government release the full contract to the public. "The president of the state has already addressed the public with concrete figures, deadlines, obligations and even the duration of the lease of 99 years, which clearly indicates that the contract has been concluded and that there are precise provisions on the disposal of the cultural property of exceptional importance," the group stated, expressing concern over the lack of transparency and the potential loss of cultural heritage.
The contract also includes a raft of legal guarantees for the investor. Serbia is required to ensure that the regulatory plan can be amended within six months if needed for the project's success, and to issue building permits within 40 working days of a properly submitted application. The investor is exempt from upfront contributions for the development of construction land; instead, these costs will be offset against public works expenses and collected only after project completion. If additional payments are required, they will be due only at the end of the project, with Serbia obligated to adopt bylaws to enable this offsetting mechanism.
Should Serbia fail to fulfill its obligations—such as timely demolition, removal of protections, or securing necessary permits—the strategic partner has the right to terminate the contract, demand compensation (including a fixed 1,000,000 euros), or force the sale or buyout of shares in the joint company. The contract even stipulates that Serbia must, at its own expense, perform any actions or sign any documents the strategic partner deems necessary to secure its rights under the agreement.
Dispute resolution is another area where the investor's interests are well protected. While Serbian law applies, any disputes will be settled through arbitration before the International Chamber of Commerce in New York, a provision that echoes other major international investment agreements. The strategic partner is also entitled to a management fee of five percent of the monthly total construction costs for providing services such as marketing, architectural design, and construction support. These services will be delivered either directly or through affiliated companies, with the joint venture covering the costs of any external contractors.
The contract allows for substantial flexibility in ownership and control. The strategic partner can transfer its share to related parties without needing Serbia's approval, and if less than 30 percent of the project is completed within two years, either side can request a buyout of the partner's share. In the event of a breach by Serbia, any claims for damages can be offset against Serbia's share of dividends, a mechanism that further secures the investor's financial interests.
Despite the project's grand ambitions, the secrecy surrounding the agreement and the sweeping legal changes required for its implementation have fueled debate in Serbia. Critics argue that the deal prioritizes foreign investor interests over national sovereignty and cultural preservation, while supporters claim it will revitalize a long-neglected site and inject much-needed capital into Belgrade's economy. As the demolition deadline of May 2026 approaches, all eyes are on the Serbian government to see whether it can meet its obligations and avoid costly penalties—or if the Trump Tower project will become another casualty of political and public controversy.
The fate of Belgrade's skyline—and its historic memory—now hangs in the balance, awaiting the next move in this high-stakes international development saga.
