Real Estate Empire of Amancio Ortega Valued at €4 Bn

25/09/2014 – El Confidencial

The fair market value of the property owned by Amancio Ortega exceeds €4 billion. Specifically, the investments carried out by the Pontegadea group amounts to €4.207 billion, according to the firm’s 2013 account review.

The figure posts by 25% higher than the €3.38 billion worth assigned to the real estate a year earlier. The founder of textile giant Inditex has sealed several deals during that time, such as the purchase of the Apple Store standing on the Colon street in Valencia, of the old headquarters of Banesto on the Plaza de Cataluna square in Barcelona, as well as a building in the shopping heart of Manhattan and the Devonshire House (pictured) in London.

Independent experts realized the valuation of the property held by Pontegadea Inversiones. Although specification of the exact value in line with current fair market values is not easy, the €4.2 billion volume is being compared with the stock market value of Spain’s biggest Colonial (€1.8 billion) or Merlin Properties (€1.29 billion).

Furthermore, Pontegadea invests more and more outside of the country, showing a total of €2.536 billion in 2013, by €500 million more than in 2012. Out of this amount, €1.65 billion was spent in Europe, €801 million in America and €83 million in other locations.

The real estate empire of Mr. Ortega splits among Pontegadea Inmobiliaria, Esparelle Inmobiliaria, Pontegadea Mexico, Pontegadea France, Madeleine 10, Pontegadea USA, Hills Place, Prima Cinque and Pontegadea UK. Turnover from this area brings the businessman €200 million more each year.

What is more, Amancio Ortega is weighting up floating a part of his possession.

 

Original article: El Confidencial (by Ruth Ugalde)

Translation: AURA REE

Amancio Ortega’s Pontegadea Inversiones Gains €1.31 Bn in 2013

23/09/2014 – Expansion

Pontegadea Inversiones, the main holding company of Spains richest Amancio Ortega, gained a record amount of €1.31 billion in 2013. The proceeds mostly derive from his vehicle Gartler which contributed with nearly €1.2 billion to the entire group.

Gartler is one of the companies through which Mr. Ortega controls his stake in textile giant Inditex. In total, the businessman holds 59.294%, with 50.01% of it in Gartler, purchased in December 2012. The year 2013 is the first that includes the gains brought in for Inditex by the firm.

Throughout 2013, the asset management company earned €16.9 billion, while large part of this amount (€16.7 billion) corresponded to Inditexs sales which improved by 8%.

The real estate arm of Pontegadea contributed with €221 million, out of which €117 million came from Spain, €75  million from America and €29 million from the rest of Europe.

Pontegadea Inversiones holds 100% of the property manager of the same name. Its portfolio contains such assets as the Torre Picasso skyscaper and the Zara store at 23 Serrano street in Madrid. This subsidary earned €87 million for the group.

Real estate investments of Pontegadea totalled at €3.83 billion, juxtaposed with the €3.34 billion amount from 2012. On rentals, the company made €170 million.

 

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE

Amancio Ortega´s Real Estate Firm Earns Staggering 163% More

21/08/2014 – El Economista

Every step of the way Amancio Ortega proves his economic strength. His property investment company Pontegadea Inversiones´s turnover showed €568 million in 2013, meaning an astonishing 163 per cent improvement if compared with the €216 million amount registered in 2012.

This firm branches down to Pontegadea Inmobiliaria and Gartler. Through the latter and another company Partler, Sr. Ortega holds 60% at Inditex. Last year, he earned €815 million in dividends from the textile giant.

At the end of 2013, the total asset volume in Pontegadea´s balance sheets reached the value of almost €4.52 million, advancing by €719 million over the previous year. The firm concluded the year with a €325 million debt.

In January 2014, Pontegadea contributed non-monetarily to its affiliate in the United Kindgom by transferring to Pontegadea UK, Ltd. all its properties located in the country.

The Spanish mother company absorbed two huge open-ended investment firms: Keblar de Inversiones and Alazán Inversiones 2001, both dissoluted without winding-up. All their property was placed on Pontegadea´s account.

Thanks to this investment arm, Amancio Ortega was able to take advantage of opportunities emerging during the recession. At the beginning of the year, the businessman disembursed €620 million in four important operations.

First, he bought Banesto´s headquarters in Barcelona for €44 million, the building of Apple in Valencia for €23 million and a shopping mall in New York for €69 million. The biggest-scale, though, was the purchase of an office building in Devonshire House, London, for the total of €450 million.

 

Original article: El Economista (by Javier Romera & Alba Brualla)

Translation: AURA REE

Inditex, Mango & Vuitton Rule on the Serrano St.

12/05/2014 – Expansion

Over the past months, Spanish property market is observing a polarization phenomenon. While peripheral areas watch rental prices abating fight, in the city centers investors scuffle to snap up the best located buildings.

The phenomenon burgeons on the high street market where prominent brands compete for premises along the Portal del Angel and the Paseo de Gracia Streets in Barcelona and on the Gran Via and the Serrano Streets in Madrid.

The latter artery seeing flocks of tourists all year long, has recently witnessed considerable movements in building investment. In detail, 13 new brands opened their stores on the Serrano last year and 23 properties changed their tenant, as Ascana advisors said.

Amancio Ortega with its Inditex through real estate Pontegadea started the trend in 2012. The businessman renovated a 2.500 square meter building formerly belonging to Restaura and situated at 23 Serrano Street, prior to opening Spain´s flagship shop of Zara. Previous store of Zara at number 46 of the street has been awarded to another Inditex´s group´s store, Massimo Dutti. The brand will move there from the premises based at number 17, which in turn will become occupied by Oysho (also by Inditex).

When Zara was preparing the new opening, its main rival Mango bought a building located at 60 Serrano Street and Nike launched a store at number 19.

Luxury

Not only mass public brands decided to open a shop on the Serrano. Also, the big name luxury labels like Armani or Stella McCartney have taken better positions along the street. Most recently, Louis Vuitton (French high-end brand) established its new, 2.500 square meter premises at 66 Serrano.

In turn, El Corte Ingles that owns 4 properties along the street (numbers: 47, 49, 52, 70) converted one of them into a Lingerie shop of its.

 

 

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE

Marriott, Barceló & Posadas Bid For Caribbean Hotels of BBVA & Ortega

19/03/2014 – El Confidencial

BBVA and Amancio Ortega are lucky. The sale of the Occidental Hoteles invoked huge interest among industrial groups and private equity funds. Morgan Stanley that supervises the process picked the most interesting offers proposed by Barceló, Marriott and Posadas from Mexico. 

Also, the pre-selection involved offers by: Grupo Playa allied with Host Hotel Resort, KSL Capital hand in hand with Iberostar and Caribbean Property Group in joint venture with Perella. AM Resort, Apple Vacation´s branch, has been outbid.

The Occidental Hoteles chain´s holding is represented as follows: 60% held by Valanza, 23% by Partler 2006 and the remaining 17% by Gregorio de Diego (…).

Both investors acquired the hotel group in 2007 for €700 million. Due to the worldwide recession and damage caused by hurricanes on the Caribbean Islands forced them to close a number of hotels. This brought €200 million losses from 2008 throughout 2011. The owners injected €100 million in the business to help it overcome the debt.

The company, that shed the emblematic Miguel Ángel hotel in Madrid, had to redeem €270 million in liabilities. The loan was granted by BBVA, La Caixa, Banco Popular, Banco Sabadell, Novagalicia and HSBC, among others. (…). In 2013, the hotel chain had the debt refinanced and profits returned.

 

 

Original article: El Confidencial (Agustín Marco)

Translation: AURA REE

BBVA & Amancio Ortega to Close the Occidental Hoteles Sale

19/02/2014 – Cinco Dias

Months have passed since Amancio Ortega and BBVA jointly named Morgan Stanley to put the Occidental Hoteles up for sale. They pursue at shedding their holding in the chain chaired by Eduardo Fuentes for which they had paid €700 million.

BBVA holds 60% of the chain through Valanza, its capital risk firm, whereas Amancio Ortega owns 23% via real estate company Partler 2006. The rest of the holding lays in hands of the hotel´s ex-director, Gregorio de Diego and the family possessing also the Comsa group.

Both investors received a lot of offers for the holding in the Occidental Hoteles, from such hotel groups as AMResorts and Playa Hotels & Resorts, a company where Barceló holds 40%, according to Bloomberg.

The Occidental Hoteles has got 18 establishments on eight different continents, in total 6.700 rooms divided among the Caribbean, Central America and Europe. The company employs 4.300 people.

By December 2013, the chain has managed the Hotel Miguel Ángel in Madrid, owned by Nadhmi Auchi. The Occidental Hoteles achieved refinancing of its long-term debt in May 2013 and announced intention to renovate its hotels (…).

 

Original article: Cinco Días

Translation: AURA REE

Jaguar Land Rover Replaces FCC in Torre Picasso

Jaguar Land Rover has announced moving its premises in Madrid. The British car producer has been looking for a new place for its main headquarters in Spain for few months. Finally, the company chose Torre Picasso, a skyscraper of Pontegadea.

By now, Jaguar Land Rover has been occupying several floors at 130 Paseo de la Castellana Street (…) in the primary zone of Madrid.

“The company wished to move to a more representative place, adequate to the brand image, without leaving the prime zome. Torre Picasso in Las Tablas was the bull´s eye” – explains Alfredo Collar, partner at Business Space of Cushman & Wakefield (C&W), the real estate consultant company that assisted at the search of new premises.

Also, Torre Titania belonging to El Corte Ingles has been taken under consideration. (…).

The Transfer

The construction company chaired by Esther Koplowitz had been the owner of Torre Picasso by the end of 2011 when it transferred the property for 400 million Euros to Pontegadea, the real estate company of Amancio Ortega. (…) The lease contract expired in December 2013.

Now Jaguar Land Rover will occupy a half of the 42nd floor (the other half is rented by E.ON. energy company), more than 1.000 square meters of space. The upper floors of the tower hosted the Presidency of FCC, including the office of Ether Koplowitz and meeting and cummunication rooms.

After the leave of FCC, the new tenant prepares itself for moving that has been scheduled for May. (…) Additionally, Jaguar rented 20 parking spaces in Torre Picasso and 33 at 79 Castellana Street, also from Pontegadea.

The amount that the automobile company will have to pay monthly will not differ significantly from the previous one as the rent in both buildings oscilates around 25 €/m2. “Jaguar Land Rover sought a place meeting its requirements of outstanding quality and location in Azca area” (…).

Source: Expansión

Ortega Buys Apple´s Building in Valencia for 23 Million Euros

The founder and main shareholder of Inditex, Amancio Ortega, continues to invest in the real estate sector via his company Pontegadea. The last item added to his collection was one of the most emblematic buildings on the Colon Street, the most commercial and expensive street in Valencia.

Pontegadea closed the acquistion of the building at 25 Colon Street that hosts the Apple shop in Valencia since 2011 for a little bit more than 23 million Euros, according to Levante and other sources from the sector. The property belonged to Corpfin Capital Real Estate. Apart from the Apple Store, occupying the ground and first floors, there are two more office floors.

(…) Vast part of the street is marked by Inditex´s pennants. The group tied itself last year with one of the few buildings not being in commecial use: the Department of Economic Affairs of the Valencian Regional Government. It was rented by Bershka that in turn subleased a part of it to a hotel.

Pontegadea also owns Apple Store (and the rest of the building hosting Banesto´s premises acquired few days ago for 44 million Euros) on the Plaza de Catalunya Square in Barcelona and another shop in Paris.

More Investments

Betting on Spain by one of the greatest world fortunes is not an isolated case. According to the latest BNP Paribas Real Estate report, many investors consider the situation on the Spanish market as “advantegous”, especially the commercial and office property, but also residential units. The investment volume in 2013 rose by 2.200 million Euros, with two big players involved. Madrid has increased the number by 74%, while Barcelona almost tripled it.

“During 2013, the U.S. investors have shown the greatest activity, involved in 5 out of 6 residential transactions, with total volume of 610 millions.” The sale of the El Corte Ingles building in Barcelona to IBA (fund manager) for 96 million Euros, to be highlighted.

Source: Expansión

Amancio Ortega Buys Old Catalonian Banesto’s Premises From Sareb

Amancio Ortega, the founder and the first shareholder of Inditex, has bought a building which hosted the Catalonian premises of Banesto in the Plaza Catalunya Square in Barcelona for 44 million Euros. Ortega, who acquired the property from Sareb, bought commercial premises of Apple within the building in 2012.

The real estate sources explain that Pontegadea, the investment company of the businessman, has tied itself up with the building through the purchase of the mortgage encumbering it, initially awarded to Banco de Valencia and Bancaja but later it was transferred to Sareb due to the banking restructuring process. (…)

The same sources reveal that the credit sale finalized at the end of December 2013, has been conducted with a 33% discount on the mortgage value that the Valencian banks granted to the building in 2006 to the Valencian real estate company Ballester to buy the building from another real estate firm, Monteverde from Madrid. At present, both companies entered the creditors´arrangements.

The mortgage of the building, occupying the number 1 of the Paseo de Gracia Street and number 10 of the Plaza Catalunya Square, at the beginning was a jewel in a lot of credits that Sareb put on sale last year. The lot, with the nominal value of 233 million Euros, named Abacus, was finally acquired by Deutsche Bank. In extremis, Sareb put an additional building of Banesto to receive a better offer, as the investors from Russia and Dubai has been already bidding for it in order to build a hotel.

Ortega bought 2.000 m2 occupied by Apple shop for 86 million Euros and was still interested in purchase of the rest of the building, reaching an agreement with Sareb after agil negotiations. The building disposes of an area of 8.500 square meters in total, 700 m2 of a terrace and 4.500 m2 of an underground parking (…).

The purchase delays converting the building into a hotel, the idea suggested for example by the Marriot group, however it would need additional input of 20 millions for refurbishment if it was to serve as a luxury hotel unit. (…).

The sale could facilitate commercial destination of the building that would require an investment of 8 million Euros. Unfortunately, the project could not be launched in short term: Apple signed the tenancy contract for 15 years in 2012 and from a top shop in Barcelona it became an important spot in the south of Europe (…).

Through the purchase Armancio Ortega empowers his position as a main investor in Barcelona since the beginning of the recession. Zara´s owner bought exactly a year ago the old commercial premises of BBVA in the corner of the Bergara Street for 100 million Euros from a German fund, Deka, and a building at 56 Paseo de Gracia Street (hosting a Burberry shop) for 53 million Euros from Testa real estate company. In the area Ortega also owns a building on Paseo de Gracia-Gran Via (a great Zara shop), number 95 – the luxury shop of Santa Eulalia and number 5 hosting premises of Santander.

The owner, the richest man in Spain and the third in the world according to Forbes, during the last years has invested over 1.2000 million Euros on property not only in Spain, but also in London (bought the Devonshire House for 490 million Euros) and in the New York (a building on the Fifth Avenue for 231 million Euros) and not long ago another one destined for offices in the Meatpacking district.

Source: La Vanguardia