Tuesday, November 30

Amancio Ortega enters Red Eléctrica with a 5% valued at 456 million

Amancio Ortega, in a file image.

Amancio Ortega, in a file image.

The two great empires of Amancio Ortega are connected by Pontegadea. The founder of Inditex articulates its controlling stake in the fashion giant, where it has 59.29% of the capital, through its family office, which, in turn, feeds the entrepreneur’s real estate investments with the succulent dividends received each year from the holding standard bearer by Zara. But this is not its only investee. Handles 5% of Enagás and until last June 9.99% of Telxius. In the digital telecommunications infrastructure operator, it shared a shareholding with Telefónica and KKR, which decided to sell the antennas to the fund American Towers Corporation (ATC). Ortega won his Telxius package in 2018 for almost 379 million euros and the double agreement with ATC for the European and Latin American network valued his titles at about 710 million euros. The capital gains for Pontegadea around 330.5 millions of euros. Ortega has not been slow to put them to use with the acquisition of just over 27 million euros of securities Red Eléctrica de España (REE), the electricity carrier in the country and right now one of the main protagonists of the energy transition in Spain.

The package, 5% of the capital of the corporation chaired by Beatriz Corredor, places Ortega as second benchmark partner behind only the Sociedad Estatal de Participaciones Industriales (Sepi), which has 20%. The bottom Blackrock declares 3.040%. The operation, as confirmed by sources from Pontegadea, was carried out on the market, so the investment at listed prices exceeds 450 million euros.

Real estate portfolio

This is the second major operation of Pontegadea that transcends this year. The other has to do with the real estate portfolio and was actually formalized in December 2020. In the central London square of St. James, in the heart of the City of Westminster and very close to Buckingham Palace, it acquired for about 220 million euros a 6-storey, 5,700-square-meter building, owned up to that time by the manager Columbia Threadneedle and mostly occupied by investment funds Cinven and GHO Capital. Nearby, just 14 numbers away, is the headquarters of the mining multinational Rio Tinto, which Pontegadea also bought in 2015 for 335 million euros. The profile of the chosen sites, prime and high-quality areas in large cities, minimized the impact of the pandemic on the portfolio of the richest man in Spain.

its family office closed last year with a turnover of 1,282 million euros, 43.3% less than in 2019, when it reached 2,261 million. The main reason for the fall is in the sharp cut in Inditex dividends, from 1,600 million in 2019 to 646 million in 2020, “as a consequence of the measures taken to alleviate the impact of the Covid pandemic on the accounts of the group of textile distribution ”. Revenues from the real estate business fell less, 1.3%, to 613 million. After discounting the 60 transfer to the Amancio Ortega Foundation, the net profit of Pontegadea plummeted 62%, with 666 million. The “independent appraisals carried out in each of the markets” left the value of the assets at 14,075 million euros, 7.2% less. Without the currency effect, the fall would be less than 5%.


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