Tag: Pontegadea Inversiones

Amancio Ortega’s RE Business is Worth Almost €9bn

23 July 2018 – El Mundo

Amancio Ortega is continuing to expand the perimeter of his real estate empire. Pontegadea, the investment arm of the Inditex creator, grew by 2.8% at the end of 2017, to reach almost €9 billion (€8.759 billion) and that, despite the fact that its profits decreased by 13%, to €1.475 billion due to donations made to his foundation.

Pontegadea groups together both Amancio Ortega’s stake in Inditex as well as his real estate investments. According to the accounts filed with the Mercantile Registry of La Coruña, the company closed 2017 with a net profit attributed to the parent company of €1.475 billion, 13% less than a year earlier, due to donations amounting to €350 million made to the Amancio Ortega Foundation, a large proportion of which are devoted to the fight against cancer.

Specifically, the Foundation donated €320 million to the purchase of state-of-the-art cancer equipment, which is going to be installed in public hospitals across all of the autonomous regions.

At the end of last year, the assets of the Pontegadea group were worth €29.028 billion, its net equity amounted to €21.006 billion and its business volume reached €25.721 billion.

In addition to Torre Cepsa, which it purchased for €490 million and the building at Gran Vía 32, Ortega owns several other office buildings in Madrid such as Torre Picasso and the Castellana 79 building, which houses the largest Zara store in the world.

The Zara property portfolio

Meanwhile, Pontegadea Inmobiliaria recorded revenues (primarily due to rental income) of €385 million, up by 13.6% compared to a year earlier, and the fair value of its portfolio of assets, set by an appraiser, was €8.759 billion, up by 2.8% compared to a year earlier.

51% of the real estate revenues come from European markets, 46% from America and the remaining 3% from Asia, according to the annual accounts, which reflect that Pontegadea’s real estate investments amounted to €629 million in 2017 and at the end of the year, they amounted to €6.913 billion: €1.688 billion in Spain and the remaining €5.225 billion overseas.

Of the investments outside of Spain, €2.681 billion correspond to investments in America, €2.191 billion to Europe (excluding Spain) and €353 million to Asia.

Pontegadea Inversiones, the parent company of the Pontegadea group is chaired by Amancio Ortega and its first Vice-President is his wife, Flora Pérez.

In addition, the company’s directors include José Arnau, who is also a director of Inditex, and Roberto Cibeira, in turn, the CEO of Pontegadea Inmobiliaria.

The Inditex group, owner of fashion chains such as Zara and Massimo Dutti, recorded a net profit of €3.368 billion in the last financial year (which closed in January), up by 6.7% compared to a year earlier, and its sales amounted to €25.336 billion, up by 8.7%.

Original story: El Mundo 

Translation: Carmel Drake

Amancio Ortega Creates RE Subsidiary In Spain With Assets Worth €1,600M+

13 November 2017 – El Confidencial

Pontegadea, the investment vehicle owned by the founder of Inditex, Amancio Ortega (pictured below), has created a real estate subsidiary in Spain to group together its local assets, which have a combined value of more than €1,600 million. The assets include Torre Cepsa, designed by the architect Norman Foster and acquired at the end of 2016 for €490 million and the building at Gran Vía, 32, which is home to one of the largest Primark stores in Europe, and which was purchased at the beginning of 2015 for €400 million.

Specifically, Pontegadea Inmobiliaria, which closed 2016 with real estate assets worth more than €6,700 million, will have a new subsidiary, in the form of Pontegadea España, a company in which Ortega will group together his real estate business in the Spanish market.

Sources close to the deal have explained to Europa Press that Pontegadea Inmobiliaria already has specific companies in many of the countries in which it operates, such as in the USA, France, United Kingdom and Korea, to hold the real estate activity of the textile giant’s founder in each respective territory.

It is about having a “more homogenous” structure in all of the markets in which Pontegadea Inmobiliaria operates (…). In fact, according to the same sources, there was no need to constitute a company for this activity in the Spanish market, given that Pontegadea already had one, Torre Norte Castellana, owner of Torre Cepsa, acquired at the end of last year. As such, it has only had to change the name of that entity to Pontegadea España, and add the leasing of real estate assets in Spain to its activity, according to the Official Gazette of the Mercantile Registry (Borme).

Torre Cepsa, Gran Vía 32 and Torre Picasso

In addition to Torre Cepsa (…) and Gran Vía, 32, Ortega owns several other buildings in Madrid, such as Torre Picasso and the Castella 79 building, which houses the largest Zara store in the world.

The founder and largest shareholder of Inditex has received revenues of €1,256 million this year in the form of dividends from Pontegadea, through the companies Pontegadea Inversiones and Partler (through which he controls a 59.294% stake in Inditex), compared with €1,108 million in 2016.

Ortega closed 2016 with real estate assets worth €6,719 million, which represents €661 million more than a year before, grouped together into his company Pontegadea Inmobiliaira, which has net assets worth €6,485 million, up from the €5,460 million that it held a year earlier. Ortega, who invests some of the dividends he receives from Inditex in the real estate sector, owns the largest real estate company in Spain, focusing on the sale, purchase and rental of large buildings. The firm owns a portfolio of real estate assets, fundamentally comprising non-residential, office buildings located in the centre of large cities in Spain, the United Kingdom, the USA and Asia.

Original story: El Confidencial

Translation: Carmel Drake

Pontegadea’s Profits Rose By 8% In 2015 To €795M

19 July 2016 – Expansión

Pontegadea Inversiones, the company through which Amancio Ortega (pictured above) controls 50% of Inditex (he owns an additional 9.28% stake through Partler) generated revenues of €810 million in 2015, up by 5.46% compared with the year before. This amount came entirely from the distribution of dividends by Inditex. The net result for the year was €795 million, up by 8.16% compared with €735 million in 2014.

Pontegadea Inversiones’ own funds amounted to €10,037 million at the end of 2015, well above their level at the end of 2014 (€7,861 million). In addition to the organic growth of the company, whose only business involves receiving dividends from Inditex, this significant increase was due to the absorption of the company Gartler, which was completed in October last year.

The directors of the company are Amancio Ortega; his wife and the Vice-President, Flora Pérez; and his two right hand men: José Arnau, as the second Vice-President of Pontegadea, and Roberto Cibeira, the CEO of Pontegadea Inmobiliaria.

Pontegadea Inversiones’ liabilities amounted to €226 million at the end of 2015.

Ortega decided to inject €717.6 million of Pontegadea Inversiones’ revenues (€810 million) into Pontegadea Inmobiliaria, the subsidiary that groups together the Inditex founder’s investments in the real estate sector. That figure was 12.4% lower than the amount invested in 2014 (€820 million).

Pontegadea Inmobiliaria’s individual results in 2015 reported revenues of €103 million, compared with €182 million in 2014. These figures reflect the impact of the absorption of Gartler by Pontegadea Inversiones, given that, prior to that operation, Pontegadea Inmobiliaria owned a stake in Gartler, which was transferred to its parent company in October last year.

Pontegadea Inmobiliaria’s net result in 2015 amounted to €106 million, compared with €184 million in 2014, a result that also reflected the transfer of Gartler to Pontegadea Inversiones.

In 2014, Gartler had injected dividends amounting to €75 million from Inditex into Pontegadea Inmobiliaria. Ortega’s real estate arm closed 2015 with a total assets of €6,058 million and net equity of €5,460 million.

Zara

Inditex has confirmed that it will open a Zara mega store in Nuevos Ministerios, on Paseo de la Castellana, 79, just a stone’s throw from El Corte Inglés. It will likely become the brand’s largest store and Zara will probably close its existing store on Calle Orense as a result.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

Amancio Ortega Reinforces Arnau As Vice President Of Pontegadea

9 February 2016 – Expansion

Amancio Ortega, founder and main shareholder of the textile giant Inditex, owner of Zara, completes the reorganization of his empire. The entrepreneur has remodeled top management of its two big real estate asset management companies. Pontegadea Real Estate and its parent, Pontegadea Inversiones. The former is the largest real estate company with a portfolio of assets valued at more than UER 5,500 million. Meanwhile, Pontegadea Investments is the largest shareholder of Inditex after taking over Gartler last October, the company that brings together 50% of the textile group. Likewise, Amancio Ortega has also another 9.28% of Inditex through Partler.

The businessman, who heads both companies, has appointed José Arnau as second vice-president, his right-hand man for years. Arnau, who will hold this newly created position, was until now secretary of the board of Pontegadea Inmobiliaria e Inversiones.


The first vice-president will go on being Flora Pérez, the wife of Ortega, both at Pontegadea Inversiones – of whom is the representative at the board of Inditex, and Pontegadea Inmobiliaria. Meanwhile, Marta Ortega Perez – the youngest daughter of Amancio Ortega, will continue to hold the position of vice-president of Partler, also chaired by the businessman. 
With the promotion of José Arnau – until now undersecretary of Pontegadea Inmobiliaria e Inversiones, Jaime Carro will take over as secretary of the board, as stated in the Official Bulletin of the Commercial Registry (Borme).

Landing in Asia  

Likewise, in the case of the real estate company, Roberto Cibeira has climbed positions. The previous head of the real estate sector takes the reins as CEO of Pontegadea Inmobiliaria, which is preparing its landing in Asia with the purchase of a building in the center of Seoul for EUR 328 million, as EXPANSION pointed out last Friday.

As sources close to Pontegadea indicate, these changes formalize a structure that was already in place in the group, since both Arnau and Cibeira have spent many years working at Amancio Ortega´s companies. 
In 2014, last financial year available, Pontegadea Inversiones obtained a turnover of EUR 18.362 million – 8.3% up, with a net profit of 2,560 million. Ortega received 1,302 million from Pontegadea Investments, largely through the participation in Inditex.

Pontegadea Inmobiliaria in turn had a turnover of EUR 94 million in 2014. 88% came from the rental of real estate in Spain.

Original story: Expansion (by R. Ruiz)

Translation: Aura Ree

Pontegadea’s Profits Doubled In 2014 To €182M

14 August 2015 – El País

Amancio Ortega’s property company Pontegadea closed 2014 with assets worth €5,593 million, an increase of €1,004 million compared with 2013. The company generated rental income of €182 million in 2014, compared with €93 million in 2013. Meanwhile, Pontegadea Inversiones, the parent company through which Ortega manages all of his investments, made a profit of €2,560 million.

Pontegadea Inmobiliaria’s revenues increased to €189 million last year, up by 10%. However, its profits doubled. According to the management report submitted by the real estate company to the Companies Registry, “the increase in profits was driven mainly by an improvement in the financial result, due to the positive evolution of the property market and favourable exchange rate differences”.

Ortega founded his real estate company in 2002. Its head office is in Arteixo (A Coruña), which is also home to the headquarters of Inditex, the company that owns fashion chains such as Zara and Massimo Dutti, which converted Ortega into a millionaire. (…).

Landlord to global brands

Pontegadea’s core business is the lease of buildings. In fact, it is the landlord to some of the world’s most famous brands, such as Apple in Plaza de Cataluña in Barcelona, Primark’s new store on Gran Vía in Madrid and a multitude of Zara stores throughout Europe. Through its leases, it had committed receipts worth €433 million in 2014; less than in 2013, when they amounted to €571 million.

The company has transferred all of the profit it made in 2014 to its voluntary reserves, i.e. to increase Pontegadea Inmobiliaria’s cash balance. In total, the company owes credit institutions €55 million. And its liability balance is fairly small, given the sector in which it operates, but it has increased by 71% in just one year. The majority of its commitments are short term, with €412 million due to mature within one year.

Ortega’s interest in property represents a small part of his huge investments. Pontegadea Inmobiliaria is accountable to Pontegadea Inversiones, the parent company that organises all of his activities. He also receives revenues from his shareholdings in Inditex (which he owns through Gartler and Partler). He also owns real estate subsidiaries in the UK, Mexico, France and Canada, as well as a biotechnology firm. According to the consolidated accounts, the group ended the year with assets amounting to €21,519 million, an increase of €2,182 million. Its revenues amounted to €18,362 million (up by 8.3%) and its profits increased by 2.1% to €2,560 million.

Original story: El País (by Cristina Delgado)

Translation: Carmel Drake