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Saturday, January 28, 2023

Pontegadea is consolidating as the largest real estate company in terms of rents and assets


Pontegadea, the real estate company of Inditex founder Amancio Ortega, has been strengthened as Spain’s largest real estate company. The company has fattened its portfolio to 15,264 million euros in the value of its assets (up 8.4% year-on-year) and generated rental income of 647 million (up 5.5%) last year, according to data released by the company last week has submitted. It leaves the Socimis Merlin Properties and Colonial.

The €15,264 million represents a record number of properties in Ortega’s hands. The portfolio appreciated for the first time since last year and was valued lower due to the Covid-19 pandemic and Brexit. Exactly the revaluation has led to it portfoliomore than acquisitions, since family office of Inditex’s largest shareholders made no major purchases in 2021.

However, Ortega has had a heavy exposure to real estate in 2022, so the expectation is that the valuation for 2022 could be much higher. A few weeks ago it became known that he had bought a luxury apartment building for rent in New York for 500 million. This is 19 Dutch in Manhattan, a 64-story tower with 483 apartments.

In January, Ortega also completed his largest transaction, the Royal Bank Plaza, a property in downtown Toronto, Canada, for approximately CA$1,150 million (just over €800 million at the time).

The Galician businessman is said to be worth $57,500 million forbes, invests a large part of Inditex’s dividends in purchasing relevant and well-located buildings around the world. Its major markets are the US (and Canada following the purchase of Royal Bank Plaza), the UK and Spain. The income of this real estate company comes mainly from rental income from offices, hotels or shops.

Their portfolio has lost value compared to the two big Socimis (listed real estate investment companies), Colonial and Merlin. In the latest update of its portfolio’s valuation last week, Merlin said it had properties for 11,390 million through June, down 12% due to the recent sale of 659 bank branches and two buildings to BBVA for 1,987 million.

In terms of rental income, Merlin was the largest of the Sozimis last year with 505 million. In the first half of the year, 222.6 million flowed into this concept (plus 8.3% after discounting the rent of the BBVA offices).

Thanks to the sale of the branches to the bank managed by Carlos Torres, Merlin has reduced its debt by 2,068 million. Now the real estate company is betting on investing in data centers as a new business and has already started building the first of these infrastructures in Vitoria, hoping to start in Madrid and Barcelona in August. Currently, more than half of the properties are offices, followed by shopping centers and logistics. This company has almost all of its properties in Spain and a small part in Portugal.

Following the transaction of the BBVA offices, Merlin was overtaken by Colonial, which increased the value of its portfolio by 7.2% to $13,334 million. In this case, the Catalan company has generated 170 million in revenue in the first half (up 9%), as reported last week.

Colonial focuses its business on offices in Madrid, Barcelona and Paris, in this case through its French subsidiary SFL, which has invested 4,900 million in the Paris office market.


Source elpais.com

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