Amancio Ortega real estate portfolio reaches 14000 euros - The real estate portfolio of Amancio Ortega reaches 14,000 million euros in valuation and exceeds the large socimis in Spain.
Armored by large office buildings in prime areas and with high-level customers, the brick of Amancio Ortega, the richest man in Spain, weathered the impact of Covid with note.
According to data released by Pontegadea, the holding company of the founder of Inditex, revenues from its real estate business amounted to 613 million euros in 2020 compared to 621 million in 2019.
That is to say, they only fell by 1.2% while most of the big socimis were forced to renegotiate and cancel rents in order to avoid defaults.
However, the pandemic did impact the valuation of its assets. For the first time, Ortega saw the value of his brick shrink. In 2019, its real estate portfolio had reached a record valuation: 15,163 million euros.
Amancio Ortega real estate portfolio reaches 14000 euros
After the pandemic, it was reduced by 7% to 14,075 million euros (if the currency effect is eliminated, the decline remains at 5%).
Despite the reversal, the valuation of Ortega's real estate assets continues to far exceed those of the country's large socimis, such as Colonial and Merlin Properties.
In addition, and precisely due to the hack of Covid, it is also close to the figures of the property portfolio of El Corte Inglés: it is separated by about 2,500 million euros.
The real estate assets of the department store group are not used for rent, as in the case of Pontegadea Inmobiliaria, Merlin or Colonial, but for its own operation as shopping centres.
Before the pandemic, the buildings of El Corte Inglés were valued at about 17,400 million euros.
Amancio Ortega real estate portfolio reaches 14000 euros
However, at the end of last year, the company's reference appraiser, Tinsa, indicated that in July the value of the portfolio had fallen to 16,500 million euros, 5.3% less than in the previous ruling, at the beginning of the year, before the confinement that forced the closure of the shopping centers.
On the other hand, even with the recovery that is taking place in President ejercicio, the real estate portfolio of the family office of Amancio Ortega (even with the data of the end of the year) exceeds that of Merlin and Colonial.
Last week, Merlin Properties, the owner of Marineda City mall in a Coruña, communicated to the National Securities Market Commission (CNMV) its results for the first half of 2021.
The company's assets rose from 13,477 million in June 2020 to 13,984 million. In their report, the directors of the group indicate that"the value of real estate investments at 30 June 2021, calculated on the basis of valuations carried out by Savills Consultores Inmobiliarios, CBRE Valuation Advisory and Jones Lang LaSalle, amounts to 12,345 million euros (12,180 in 2020)".
Amancio Ortega real estate portfolio reaches 14000 euros
If the GAV indicator is taken into account, the gross value of assets reached 12,893 million euros in the first half of this year, an increase of 0.5% since December.
Interestingly, among the main tenants of Merlin is Inditex, the textile of Amancio Ortega from whose dividends Pontegadea feeds to, among other investments, undertake the acquisition of new properties.
As detailed in the communication to the stock exchange supervisor, this is one of its major clients, behind BBVA and Endesa, and represents 2.8% of its income.
Colonial also presented its biannual results last week. In the same way as Merlin, although the year-on-year valuation of its assets grows, it falls far short of Pontegadea's magnitudes.
"The panel periodically determines the fair value of real estate investments. Fair value is determined on the reference values of the evaluations made semiannually by third-party independent experts (Jones Lang LaSalle and CB Richard Ellis Valuation, in Spain, and CBRE and Cushman & Wakefield, in France), so that, at the end of each semester, the fair value reflects market conditions of the elements of the investment properties as of such date,” indicate the administrators of the company, which valued the portfolio of real estate in 12.017 billion euros, 3% on the pricing of June 2020.
Amancio Ortega real estate portfolio reaches 14000 euros
Apart from the fact that the valuation of Pontegadea's real estate assets will recover this 2021 (the valuation of the 14,000 is at the end of the 2020 financial year), a fact suggests that Roberto Cibeira's will continue to increase their acquisitions in the brick this year: the increase in income via dividends that the holding will receive from Inditex and that are destined to be reinvested.
In Pontegadea, income from dividends from investee companies went from € 1,640 million in 2019 to € 669 million in fiscal year 2020.
After the important setback is the decision of Inditex (Pontegadea is the depositary of 59% of the company's shares in Ortega's hands) to mutilate the extraordinary dividend distributed among its partners last year.
Pontegadea received 646 million euros from Inditex as shareholder remuneration. In 2019, the figure was 1,626 million euros.
This year, however, the first shareholder of the company is expected to receive 1,293 million from the textile multinational.