15,264 million euros. This is the value that the real estate portfolio reached at the end of 2021 Amancio Ortegafounder of Inditex, which he runs through family office Pontegadia, under which it collects all its investments in bricks and is of a business nature. A record, it once again crossed the 15,000 million mark after the pandemic caused the valuation to drop in 2020.
These are 15,264 million representing 8.4% growth Compared to the year of Covid-19, and an increase of 0.6% compared to the assessment of 2019, which set the record 15,163 million so far. This has been exceeded in the year that Pungadia They didn’t make big purchases of real estate, in contrast to what it did, for example, during the first months of 2022: in January it acquired an office building in Toronto for 800 million, its largest operation; Last week it completed the purchase of an apartment building in New York for $500 million. In terms of asset size, Pontegadea is the main real estate group in Spain.
From the company, the increase in valuation is explained by the overall improvement in the markets over the past year, especially in USA and UK, signature keys, once vaccination allows a significant part of economic activity to be restored. Despite the lack of major operations, it was shown that the real estate portfolio continued to grow. Amancio Ortega’s strategy in this sector is characterized by the purchase of residential and office buildings in the most exclusive areas of the world’s major cities, Especially in the US, UK and Spain.
Business is on the rise
In addition to real estate valuation, all major variables for Pontegadea’s business have seen growth over the past year. Starting with income that grew 53.7% to 1,970 million.
These consist, on the one hand, of dividends received from the companies in which they invest. Through this channel, it produced a total of 1,323 million, double what it was in 2020. Most of this number comes from Inditexof which Ortega owns 59.29% of the capital. The textile giant increased its dividend charge for fiscal year 2020, after that corresponding to 2019 benefits was drastically reduced due to the onset of Covid-19. In 2021, Pontegadea received 1,294 million from the company he now heads Martha Ortegawhich since March of this year has become part of the Board of Directors of the Family Office.
In addition to this amount, another 29 million received from other companies in which Pontegadia invests. This is the situation Enagas, has 5%; or from Telxiuswith 30% of the capital after the operation by Pontigadia and Telefónica, KKR acquired 40% of this fund owned by the telecom infrastructure company. Since last year, it has also been a shareholder in Red Eléctrica Española (now Redeia), of which it has acquired 5%; and Portuguese energy infrastructure company REN with 12%. Over the past year, investment vehicle Ortega also acquired 49% of the Repsol Delta wind farm.
There was also growth, but to a lesser degree, income from Rentals of the buildings you own. And those numbers reached 647 million, an increase of 5.5%, which is also higher than the previous figures for the epidemic. This increase since the signing has also been explained by the consolidation of a new property at the end of 2020, which added new rents throughout 2021.
With all this, the net profit of the Pontegadea Group was 1,606 million, 140% more than the result obtained in 2020. This figure includes a capital gain of 331 million resulting from the sale of the Telxius Tower division to American Tower, in January of this year . last year. The 2021 net profit is down from the $1.778 million he made in 2019.
On the other hand, the group ended the year with a positive net financial position of €1,080 million, resulting from a cash and cash equivalent balance of €1,884 million, and financial debt of €804 million.
More growth in 2022
The operations and business development in which Pontegadea is involved indicate that 2022 will also be a growth year for the company. On the real estate side, it has carried out three major operations that enhance the group’s portfolio: the purchase of the Royal Bank Plaza in Toronto, its largest investment to date at $800 million. 240 million allocated for the acquisition of an office building in Glasgow, and 500 million for the apartment building 19 Dutch, in midtown Manhattan.
In addition, its income will generate a significant boost, thanks to the dividend approved by Inditex at the last shareholder meeting for fiscal year 2021. This amounts to €2898.5 million, up 33% from 2020. Of this figure, Amancio Ortega corresponds to 1,718 million .
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