Jared Kushner’s private equity firm, Affinity Partners, announced Monday that it is withdrawing from a planned Trump-branded hotel and real estate project in Serbia. The decision follows corruption charges filed by Serbian prosecutors against four senior government officials connected to the half-billion-dollar development.
The abandoned deal had been heavily promoted by Serbian President Aleksandar Vucic, who viewed the project as a way to boost downtown Belgrade and attract foreign investment. A cabinet minister, an aide, and two other officials responsible for approving the development were charged with abuse of power and forgery. The controversy highlighted concerns that the project had encouraged government officials to circumvent legal protections, including cultural heritage rules protecting bombed-out buildings near Serbia’s government headquarters.
Affinity Partners, which is funded largely by foreign sovereign wealth funds, said it was pulling out to avoid division and “out of respect for the people of Serbia and the city of Belgrade.” The project, which also involved the Trump Organization, would have replaced damaged structures with apartments and a luxury hotel carrying the Trump name. Critics argued that Vucic’s push for the project prioritized appealing to the Trump family over upholding Serbian law.
The Serbian Parliament had recently passed a law overriding cultural heritage protections for the site, a move that sparked public outcry and led to resignations among officials. Affinity Partners had sent legal representatives to Belgrade in recent months to assess the situation, and the government characterized the controversy as an administrative error. Despite the withdrawal, prosecutors indicated their investigation into other individuals connected to the project will continue.