In the past year and a half, Amancio Ortega has pivoted his real estate investments to logistics centers in the United States and Europe. A passing fad? A strategy that will sit in your investment portfolio? Only time will tell. What the numbers say is that it is close two thirds of 2.8 billion who have invested since July 2022 are in the distribution centers. Or put another way, theirs 22 most recently acquired13 logistics warehouses have in common that they all have solvent tenants and long-term lease contracts: five from Amazon, two from Home Depot, and one from Fedex or Nestle.
Total, invested 1,773 million of these properties and now has more than one million square meters in this sector when only one and a half years ago it did not exist. Why are you now entering this market that you haven’t touched on any more than 150 operations What have you been up to in the last two decades? According to the many sources consulted, there are many answers.
The first is high real estate prices. In Spain, not achieved, so it is more than three years without making a large investment in the national land. Consequently, building purchases are made, above all, in the United States and the United Kingdom.
The second is lack of financing from your competitors because of the high cost they will pay to finance themselves due to the increase in rates. A situation that reduced the number of transactions by more than 50% in the United States and Europe last year.
Like Inditex, Pontegadea, investment arm of Amancio Ortega, has no debt and No need to take out a loan either. to make acquisitions so that they are not affected by high interest rates.
In 2022 he pocketed 1,718 million for dividends that it receives almost 60% that is in Inditex. A year later there were 2,217. The forecast for this year is that it will exceed 2,500. Pontegadea’s mandate is to invest all the money as quickly as possible so that it continues to create value. In 2022, a record 2,783 million was spent on 13 operations. A year later there were 1,335 in 11.
In a recent interview with Financial Times, Roberto Cibeira, CEO of Pontegadeaexplained that they have observed “a price adjustment in Europe in all asset classes” in recent months.
“We believe this is a good time for investors low debt Given the tightening of credit conditions, which reduces the competition for possible acquisitions to a reasonable extent,” said the head of the company, who acknowledged that they were offered assets “in bilateral processes and, in many cases, outside the market (before it was announced to the public), especially in logistics, retail, offices and infrastructure.” The third reason given by experts for this change in strategy is that Amancio Ortega chose diversify your investment. The majority of its more than 100 properties are office properties for rent. Today, 10% are logistics platforms.