EXCL @realDonaldTrump was refused £38m from Bank of Scotland as he tried to a buy flagship Scottish property & create his first overseas hotel. Trump allegedly asked the bank to foreclose on its owners & deal directly with him. My 6,000w investigation: scotsman.com/read-this/dona… 
Here is a 1,000w news lead with the key disclosures surrounding how @realDonaldTrump repeatedly tried - and failed - to establish a "landmark" hotel at the world famous Old Course in St Andrews, Scotland: scotsman.com/news/politics/…
You'll also find a video report from me at St. Andrews st the top of both stories, which was produced by my colleague @audiotaku
So, here's a thread fleshing out my @scotonsunday story on how @realdonaldtrump tried - and failed - to buy Hamilton Hall at the world-famous Old Course in St Andrews. He planned to turn into Trump St Andrews Hotel. It would have been his inaugural international hotel venture.
First up, @realDonaldTrump made not just one offer for Hamilton Hall, but four. None were accepted. Trump even invited Bank of Scotland executives to Trump Tower in NY. No deal. But the bankers got signed photos. Of Trump, naturally.
Secondly, the Bank of Scotland rejected @realDonaldTrump’s request for a £23m mortgage and £15m loan on a £23m purchase. It felt Trump’s proposed deal, which involved him putting in no cash, was “too risky.”
Thirdly, the Bank of Scotland executive who negotiated directly with @realDonaldTrump alleges both Trump himself and the @Trump Org’s George Sorial asked the BoS to foreclose on Hamilton Hall’s owners.
Fourthly? The collapsed deal's been a secret known only to @realDonaldTrump, @EricTrump, @IvankaTrump, @DonaldJTrumpJr & a few lawyers, but court depositions and exhibits filed in Rhode Island lay bare @realdonaldtrump’s determination to buy the landmark property.
Point five: the story raises Qs about @realdonaldtrump’s finances. In Nov ‘08, he told @TheScotsman the @Trump Org was in a “very, very strong cash position.” His exec VP said it had £1bn in cash. But 3 weeks previously, Trump was trying to get a mortgage & loan for £38m.
Sixth, and final observation, for now: the @Trump Org did not answer a series of Qs I asked it about the deal. It did not respond, full stop.
Here is a letter, signed personally by @realDonaldTrump, sent to the Bank of Scotland detailing his first £23m offer for Hamilton Hall in St Andrews, Scotland (while asking for a £23m mortgage & £15m loan)
So how did Trump become interested in St Andrews and how did the deal unfold? Or rather, how did it collapse? Some key points follow. Expect bonus gratuitous wrestling videos (don't worry, it'll all become clear)
.@realdonaldtrump visited the Old Course at St Andrews in April ‘06. The stated purpose of his visit was to meet with Royal & Ancient officials. Hamilton Hall, the imposing red sandstone building, is pictured behind him in this photograph.
Less than four months later, the Trump Organisation entered into a confidentiality agreement with a firm called St Andrews Grand Ventures LLC. It was run by the Wassermans, US real estate developers, and the owners of Hamilton Hall.
A source told me @realdonaldtrump & David Wasserman knew one another socially. Wasserman approached Trump to discuss boosting the equity & marketing potential of Hamilton Hall, which the Wassermans hoped to turn into a fractionalised ownership-model “super luxury membership club"
The following March, the Trump Organisation and Wasserman signed a letter of intent proposing a confidential venture agreement of Hall, which would create a Delaware LLC, giving Trump a 25% stake in the business.
Here is the title page of that letter of intent.
Here is the title page of that letter of intent.
At this point, you might be asking, what was so special about Hamilton Hall? Well, you probably have to appreciate golf to appreciate the property. I wrote about its history here: scotsman.com/lifestyle/dona…
Anyway, that letter of intent proposed renaming Hamilton Hall. Its new name would incorporate the word, ‘Trump’. @realdonaldtrump, it specified, would license the use of his name to the venture for £1, and would receive various fees for marketing and managing the property.
The document was signed on 23 March ‘07 on the Trump Organisation’s behalf by Trump’s eldest son, @DonaldJTrumpJr
The next month, soon after his appearance at Wrestlemania 23, @realdonalttrump held a meeting at his 26th floor executive office in Trump Tower, NY. The Trump Organisation was also represented by @IvankaTrump & @EricTrump. @DonaldJTrumpJr was on speakerphone.
The Trumps met with David & Bernie Wasserman, and Charles Wighton & Donald Kerr, executives from @AskBankofScot. The purpose of the meeting, Wasserman says, was to hold an “open discussion” about whether there was “potential for a transaction” surrounding Hamilton Hall.
The meeting, according to one attendee, ran on for nearly three hours, with the visiting party meeting first with @realdonaldtrump, and then with @IvankaTrump, @DonaldJTrumpJr & @EricTrump, to whom he had delegated responsibility.
According to David Wasserman, the Bank of Scotland’s Wighton - an area manager - and Kerr - head of its corporate & commercial division, asked @realdonaldtrump for a memento of their visit. They flew back to Scotland with autographed photos of Trump posing at Wrestlemania 23.
Some light relief. Here's @realdonaldtrump in action at that Wrestlemania event, punching and, yes, shaving the head of his friend, Vince McMahon. Sure, it's no Rock vs Stone Cold, but it's curiously beguiling:
Here are the two men, with associates, pictured more recently.
Anyway, back to the paper trail. In May ‘08, @realdonaldtrump incorporated a new Edinburgh-based firm at @CompaniesHouse. Called Trump Hotel St Andrews Ltd, its directors were Trump, @DonaldJTrumpJr, @EricTrump, @IvankaTrump, and Allen Weisselberg. George Sorial was secretary.
A US contact recently pointed out Trump had a firm, registered in Delaware, with a similar sounding name.
At the time, @realdonaldtrump's contentious plans for his inaugural Scottish golf resort in Aberdeenshire were mired in the public inquiry process. But behind the scenes, he was quietly setting about turning his ambitions for Hamilton Hall into a reality.
On 15 October '08, @realDonaldTrump wrote to the Bank of Scotland, proposing to pay £23m for Hamilton Hall and “immediately commence construction on what will be known as the Trump St Andrews Hotel.” He wanted a £23m mortgage and £15m construction loan. Again, here's the letter.
Did you see the second last paragraph? Interesting, right? @realDonaldTrump told BoS it would use it as its “primary bank” for all of @Trump Org’s UK businesses, including Trump International Golf Links.
Here's the thing - according to his company’s accounts, @realDonaldTrump’s never once sought out or used bank facilities to bankroll his Aberdeenshire resort. He also bought the various parcels of land for £9.5m in cash.
He did the same with Turnberry in South Ayrshire - a £35.7m cash deal. And @CompaniesHouse accounts for his UK entities show he's provided his Scottish resorts with £153m in interest free loans.
So the whole bank thing is weird, right? Right. But buckle up. It gets weirder.
On 3 November, less than three weeks after asking BoS for £38m, @realDonaldTrump gave an interview to @TheScotsman. He used to speak with us a lot. Not so much recently, granted. We're all that bit busier these days.
He claimed the @Trump Org could withstand the ill winds of the global recession. "The world has changed financially & the banks are all in such trouble, but the good news is that we are doing very well as a company & we are in a very, very strong cash position," he said.
Just 13 days later, George Sorial gave an interview to @TheScotsman. He said Trump had £1bn in cash “sitting in the bank and ready to go” for his Aberdeenshire course, adding that @realdDonaldTrump has “recently increased his cash position.”
Sorial added: “The money is there, ready to be wired at any time. I am not discussing where it is, whether it is in a Scottish bank or what, but it is earmarked for this project. If we needed to put the development up tomorrow, we have the cash to do that.”
This raises an important Q: if @realDonaldTrump had £1bn in cash in autumn ‘08, why was he scrambling to the Bank of Scotland to ask for a mortgage and loan worth £38m? At time, he and Deutche Bank were in a stand-off, but any other tips? My DMs are open if so.
Anyway, back to @realDonaldTrump’s attempts to buy Hamilton Hall. After his 15/10/08 letter, the Bank of Scotland asked him to provide more detail of his plans for the luxury hotel in St Andrews. @realDonaldTrump wrote back on 22/10/08. His tone was less cordial this time.
“First of all, you are asking us to provide detailed plans ‘for the entire project’ when in fact we haven’t even hired a development team and are offering a deal with minimal due diligence that can be closed within the next 24 hours,” @realDonaldTrump told the bank.
.@realDonaldTrump’s letter continued: “I must reiterate that were asking to move forward with a fast and fair deal or we have no interest in pursuing this any further. We have already offered far more than the property is worth.”
.@realDonaldTrump added: “Once again, we will quickly restore this beautiful building and create a landmark that will be enjoyed by many future generations who visit the birthplace of golf.” Here is that letter in full:
The Bank of Scotland didn’t bite. Charles Wighton confided in his colleagues the deal was “too risky” and tantamount to a “free loan.” If it went with @realDonaldTrump’s proposal, the bank would be in danger of being “held to future ransom,” he reasoned.
Wighton had other misgivings. He claims @realDonaldTrump and George Sorial asked the bank to foreclose on the Wassermans and deal with the @Trump Org directly. The bank refused. Wighton regarded such suggestions as “worrying” and “inappropriate.”
In his deposition, part of a civil court case between the Bank of Scotland and the Wassermans, Wighton told lawyers: “Trump was looking at us to just foreclose as it suggests - ‘demand your debt and then we’ll do a deal with you separately’.”
.@realDonaldTrump couldn’t convince the bank on his deal, but he wasn’t discouraged. Two months later, Sorial proposed yet another offer from the @Trump Org for Hamilton Hall - a licensing style deal where HBOS would put up the cash, and Trump would lend his name.
Sorial sold it as a “50/50 joint venture 50/50 joint venture or partnership between Trump Hotel St Andrews Limited and HBOS, with HBOS providing the financing for all related construction costs in exchange for use of the Trump brand name.”
Sorial said rooms would cost a minimum of £400 a night at Trump St Andrews, but stressed even such numbers were “extremely conservative.”
In an email to the bank, he said: “Based upon our performance in numerous global markets and the current strength of the Trump brand name in Scotland and worldwide, we are confident that the realised numbers will be significantly higher.”
The bank didn’t accept Sorial’s proposal. Wighton’s main objection? The fact there was no cash investment from the purchaser - the @Trump Organisation.
By 2009, the Bank of Scotland issued a calling-up notice on Hamilton Hall, and the property was marketing at open auction. There were nine offers made in all. Two of them came from @realDonaldTrump’s companies.
Given Hamilton Hall's status, there were various other wealthy parties interested in it. They included Dermot Desmond, the Irish billionaire & single biggest shareholder in @CelticFC. Here's a spin off story on the other suitors alongside @realDonaldTrump: scotsman.com/news/politics/…
So, in August '09, the first of the two Trump offers, for £10m, came with strings attached. Namely, Trump Hotel St Andrews Limited wanted a £9m loan from the Bank of Scotland, repayable over a decade at an interest rate a percentage point above LIBOR.
The second offer, for £4m, was a cash deal. Neither bid found favour. The successful bidder, Herb Kohler, the US plumbing magnate, paid £11m cash.
With that, @realDonaldTrump realised the game was up. Trump Hotel St Andrews Limited was formally dissolved in June ‘10. Kohler, meanwhile, transformed Hamilton Hall into luxury flats. Nowadays, they’re some of Scotland’s most expensive properties.
i asked the elected representatives for St Andrews, @StephenGethins & @willie_rennie, about @realDonaldTrump’s failed move on the home of golf. Gethins said the town had a “lucky escape.” Rennie said Trump had demonstrated “bully boy tactics.”
The one question that can’t be answered is whether a deal may ever be revived. The Old Course is, after all, hosting The Open in 2021. Would you be up for an interview when you visit the UK in a few weeks, @realDonaldTrump?
In the meantime, anyone with information about the Trump's businesses and finances in Scotland can contact me via the encrypted email address in my profile. My DMs are also open.
