Amancio Ortega has accelerated this year with the purchases of its Pontegadea family office. The founder and largest shareholder of Inditex has invested 1,605 million euros if the acquisition known yesterday in the US is added, a logistics platform operated by Fedex for 34 million. This high rate means that it has already disbursed around 93% of the dividend it will receive this year from the textile group.
In its latest acquisition, it is reinforced in logistics, a type of asset in which Ortega does not lavish. In this transaction, he buys the platform occupied by the Fedex delivery company in Menomonee Falls, Wisconsin, from the real estate agency Realty Income, according to the local media outlet BizTimes.
Ortega’s strong investment coincides with what will be the largest dividend in the history of Inditex, a group of which it controls 59.294% of the capital. The textile group will distribute between 2,898 million among its shareholders, of which 1,718 million will go to the founder of Zara. The Galician businessman already received half in May (859 million) and the rest will be pocketed on November 2.
At the moment, it is the beginning of the year with more investment volume from Pontegadea until August compared to other exercises. A large part of the dividends that Ortega receives are reinvested through Pontegadea in real estate assets destined for lease, and lately he has also diversified into renewable energies or telecommunications.
In January, it carried out its largest acquisition by acquiring the office complex Royal Bank Plaza, located in downtown Toronto (Canada), for about 1,150 million Canadian dollars, just over 800 million euros at the exchange rate of that time. The family office acquired this asset from two Canadian pension funds. Specifically, the municipal employees of Ontario and the Canada Pension Plan Investment Board.
In April, Pontegadea opted for Scotland by acquiring in the center of Glasgow an office building under construction for about 240 million.
In July, it became known that the businessman – with a fortune of 63.4 billion according to Forbes – was entering the luxury rental housing market by taking over the building called 19 Dutchman from Manhattan. He paid 500 million for the skyscraper with 64 floors and 483 apartments.
At the end of July it became known that Pontegadea had invested 27 million to take control of 49% of the Kappa photovoltaic complex, operated by Repsol in Manzanares (Ciudad Real). On the same date, it acquired 5% of the capital of Renewable Enagás, for 3.5 million.
Portfolio of 15,200 million
Only in real estate, until August it has added 1,575 million to its portfolio, which represents around 10% of the value of all the properties that it has been buying in the history of Pontegadea.
At the end of 2021, this real estate portfolio reached a valuation of 15,264 million, its highest appraisal, with year-on-year growth of 8.4%. A year earlier, the Covid-19 pandemic had caused a reduction of 7.2%, to 14,075 million.
Since the year of the beginning of the pandemic, the investment of Pontegadea It had been more modest. 2020 was a year without known investments and in 2021 it accelerated with more than 450 million disbursed, although it sold its participation in the Telxius towers for 710 million. That year it entered renewables by acquiring 49% of Repsol’s Delta wind farm for 245 million.
The previous year, 2019, was however very fruitful for the businessman, since he spent more than 2,000 million. At the beginning of that year, he closed the operation announced at the end of 2018 in which he became the landlord of Amazon in Seattle by acquiring Troy Block in Seattle (USA) for 656 million. Months later he paid 377 million for another property, Arbor Blocks, in the same city and that in this case is occupied by Facebook. At the end of that year, he took one of his biggest trophies, The Post Building in London for nearly 700 million.
Two decades. Amancio Ortega has cemented his real estate empire with the dividends he has received from Inditex, in the last 20 years since its IPO, when the growth of the textile giant boosted its profits and, by extension, its remuneration policy. In recent years, Ortega has received around 15,000 million euros in this way, an amount that, moreover, is close to the current value of his real estate portfolio. Of those 15,000 million, 77% have been received in the last 10 years, a period in which his remuneration for the 59% he owns of Inditex began to exceed 1,000 million euros per year, up to the record 1,710 he receives this year .
North America. While receiving more dividends, Ortega has also bet in recent years on larger purchases. The buildings for which it bets, normally offices and commercial buildings, are always well located in the best areas of large cities. Its largest markets are the United Kingdom, the United States and Spain, although it has properties in South Korea, Mexico, France, Italy, Portugal, France and Canada. Precisely this country and the USA have become the favorite target for Pontegadea this year. Another of the peculiarities of this investment vehicle is that it maintains the properties it buys in the long term, without selling assets.