The More Than 15,000 Million In Real Estate Of Amancio Ortega

The Galician businessman's investment vehicle is barely in debt as he buys 'lungs' thanks to the great liquidity available to the group for millionaire dividends from Inditex

According to the company, the Pontegadea group, the business holding of Amancio Ortega, adds 15,163 million euros in real estate at the end of 2019.

This figure consolidates it as the largest operator in the Spanish real estate market. It places it above its direct European competitors, surpassing Merlin Properties and Colonial, the two main Spanish Socimis that had close to 12,700 and 12,200 million euros, respectively, in assets.

Also, unlike other assets, the Galician businessman’s investment vehicle has little debt since he buys ‘lung’ thanks to the great liquidity available to the group for millionaire dividends from Inditex.

The company, which includes all the portfolio companies owned by Ortega, its real estate subsidiaries and business interests, closed the financial year 2019 with a net profit of 1,778 million euros, an increase of 14.7% compared to the previous year, after accounting for 104 million euros in donations to the Amancio Ortega Foundation.

Its turnover reached 2,261 million euros, an increase of 18% compared to 1,916 million in 2018. Of that amount, 1,640 million correspond to dividend income from investee companies – fundamentally from the Inditex Group – and 621 million to net income from the real estate business.

Specifically, the dividends contributed by Inditex to Pontegadea Inversiones (50.01%), and Partner 2006 (9.28%) rose to 1,626 million euros in 2019.

In addition to the 59.29% stake in Inditex, on that date, the group held financial interests in Telxius (9.99%), telecommunications infrastructure subsidiary of Telefónica Infra, and Enagás (5%).

In the balance sheet of the Pontegadea Group at the end of 2019, a financial debt of 1,091 million euros and cash and equivalents amounting to 907 million  (with a net debt position of 184 million euros), as well as donation commitments to the Amancio Ortega Foundation for an amount of 268 million euros.

During the 2019 financial year, the Pontegadea group made real estate investments worth 2,065 million euros, in line with its goal of investing 2,000 million euros annually.

Outside the real estate field, the purchase of 5% of the technical manager’s capital in the gas system took place.

The main real estate investments of 2019 were made in the United States. The acquisition of the Troy Block and Arbor Blocks complexes in Seattle and 815 Connecticut Avenue in Washington DC stands out, and in the United Kingdom, with the purchase of The Post Building. 61% of the global real estate portfolio is located in Europe.

On the other hand, regarding the dividends from Inditex, the textile giant chaired by Pablo Isla has planned a payment of 0.35 euros per share for 2020, which will represent an income for the Pontegadea Group of 646 million euros, 60, 27% less than the 1,626 million received in 2019 for this concept.

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