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Amancio Ortega buys seven logistics jewels in the United States in his largest real estate operation

2022-09-13T10:39:35.133Z


Pontegadea pays 905 million dollars for distribution centers of Amazon, Home Depot, Nestlé, Fedex and TJX


The purchase of a Fedex warehouse in Wisconsin by Amancio Ortega had something strange.

It was a relatively small operation in a sector, logistics, in which Pontegadea had not been lavish.

It might seem like an experiment, but it was really just the tip of the iceberg.

The operation in Wisconsin and the one reported later in Philadelphia are part of a large landing by the founder and main shareholder of Inditex in logistics real estate in the United States.

He has closed the block purchase of seven distribution centers of leading companies for an amount of 905 million dollars―a similar amount in euros at the current exchange rate―, according to an investigation carried out by EL PAÍS.

These are strategically located distribution properties with long-term contracts leased to leading companies: Amazon, Fedex TJX, Home Depot and Nestlé.

They are, in that sense, jewels of logistics.

Separately, they already constitute important investments, but they have been negotiated together in what is the largest operation —real estate or in any other sector— carried out by Ortega's patrimonial company.

The investments are in five states: Texas, Pennsylvania, Wisconsin, South Carolina, Virginia and Tennessee, according to property registry data from states, cities and counties, communications to the United States stock exchange supervisor and real estate sources consulted. .

The United States has become the market with the largest investments by Pontegadea, which has declined to comment on the operation.

In that country, Amancio Ortega's company had been traditionally investing in office buildings and, to a lesser extent, in hotels and commercial real estate.

This year, however, it has taken a double leap.

On the one hand, with the agreement to purchase a luxury housing skyscraper in New York for 500 million and, on the other, with the offensive in the logistics sector.

The company maintains its investment philosophy: quality assets, with predictable income.

In the case of rent, stable and solvent tenants, as is the case with logistics centers.

The properties acquired are the logistics center of Fedex in Menomonee Falls, on the outskirts of Milwaukee (Wisconsin), which transpired at the beginning of August, for 35 million dollars.

Secondly, the purchase of the distribution center in Philadelphia (Pennsylvania) of the Marshall's department store brand, part of the TJX group, Inditex's rival in the fashion business, has come to light.

The operation amounted to 148.1 million, according to data from public records.

These were not isolated operations.

Ponte Gadea Compass, domiciled in Florida, acts as buyer in all cases and has also acquired the distribution center in Breinigsville (Pennsylvania) operated by the Swiss multinational Nestlé, of which Pablo Isla, president of Inditex until last March, is coincidentally a director. .

Amancio Ortega's company, directed in the United States by Patricia Alonso González, has disbursed 137.6 million dollars, according to the documentation consulted by EL PAÍS in the property records of Lehigh County.

According to that record, the now seller paid 61.8 million for the property in May 2019. The center has 1,045,000 built square feet (97,000 square meters) and a long-term rental contract with Nestlé, initially until 2028.

Nestlé distribution center in Breinigsville (Pennsylvania), acquired by Amancio Ortega for 137.6 million dollars in July 2022, within a portfolio of logistics assets in the United States, in an image taken from Google Maps.

Home Depot logistics center in Dallas, Texas, in an image taken from Google Maps.

It is the most valuable of the distribution centers that Amancio Ortega has bought as part of a portfolio for 905 million dollars.

Amazon logistics center in Charleston, Tennessee, in an image taken from Google Maps.

It is one of the two distribution centers of the e-commerce giant that Amancio Ortega has bought through Ponte Gadea Compass, one of its subsidiaries in the United States, for a total of 905 million dollars.

Amazon fulfillment center in West Columbia, South Carolina, in an image taken from Google Maps.

Ponte Gadea Compass has purchased seven distribution centers occupied by blue-chip companies for $905 million.

Two of them are operated by Amazon, the e-commerce giant.

Home Depot logistics center in Winchester, Virginia, purchased by Amancio Ortega for $74 million in July 2022 as part of a portfolio of distribution and logistics assets in the United States, in an image taken from Google Maps.

In the cunning of seven stores are two from the home and DIY giant Home Depot.

Distribution center purchased by Amancio Ortega in Philadelphia (Pennsylvania) for 148.1 million dollars in a photograph taken from Google Maps.

It is part of a portfolio of seven logistics assets that Pontegadea, the businessman's holding company, has bought en bloc for 905 million dollars.

This warehouse is leased to Marshall's, a department store chain of the TJX group.

Fedex logistics warehouse purchased by Amancio Ortega in Menomonee Falls (Wisconsin), on the outskirts of Wisconsin.

It is part of a portfolio acquired by Ponte Gadea Compass.

It was the first operation that jumped to the public light, but without it transpiring that it was part of a much larger operation.

Another of the purchases is that of a Home Depot distribution center in Winchester (Virginia), on the outskirts of Washington for which Ponte Gadea Compass has paid 74 million dollars to Vereit OW Winchester VA, which had bought it in June 2019 for 54.4 million.

The operation was made public last August, according to the documentation to which EL PAÍS has had access.

The center has about 43,300 square meters built.

Among the other properties in that portfolio are two logistics centers leased from Amazon, with 1,016,000 square feet (94,000 square meters) built each.

One is located in Charleston (Tennessee) and was owned by another company called Vereit OW Charleston TN.

The other is in West Columbia, South Carolina and was owned by Vereit OW West Columbia.

Ponte Gadea Compass has also left a trace of its activity in the public records of said States, but for now the figures of the transaction are not known.

Not all states require price disclosure.

Those six properties were part of the initial logistics portfolio in which the real estate group Vereit, Tiger Alternative Investors, Korea Investment & Securities (KIS) and Ocean West were initially partners.

They were included in two portfolios called Diamondback Industrial, but the real diamond, the jewel in the crown, was the seventh acquisition: a giant 2.3 million square foot (213,000 square foot) Home Depot warehouse and distribution center in Dallas, Texas. square meters), purchased on August 11, 2020 for 246.7 million dollars and now also acquired by Ponte Gadea Compass.

The real estate giant Realty Income bought Vereit and, together with its partners, decided to put that portfolio of seven properties up for sale, both to raise cash and to undo that inheritance resulting from the merger with Vereit.

Pontegadea has taken advantage of the opportunity and has taken over the portfolio en bloc.

In the results of the second quarter, registered with the Securities and Exchange Commission of the United States (the SEC, for its acronym in English), Realty Income reported the sale: "In July 2022, six of the seven properties have been sold of our industrial alliances acquired in connection with the Vereit merger and the seventh property is expected to be sold later,” the company told the supervisor last month.

"The gross purchase price of the properties is $905 million," he said.

Amancio Ortega has been investing the multimillion-dollar dividends he receives from Inditex in diversifying his assets.

The real estate sector has been his favourite, although entry into infrastructure companies with predictable and guaranteed returns has made its way into his preferences.

Pontegadea has set its sights on electricity, gas and telecommunications networks and also on renewable energy companies.

This year 2022 is being especially active in investments for the investment arm of Amancio Ortega.

In January, he closed the purchase of the Royal Bank Plaza skyscraper in Toronto for 843 million euros, the asset for which he has paid the highest price in his entire investment history.

In April he closed the largest acquisition of an office building in Scotland by paying the equivalent of around 237 million euros for a property in Glasgow.

In July, the advanced negotiation for the purchase of 19 Dutch, a 64-storey luxury housing skyscraper for rent in New York for around 500 million euros, was announced.

With the logistics offensive in the United States, Pontegadea's acquisitions this year exceed the level of 2,000 million, a milestone in Ortega's investment history.

Logistics has always been a strong point and a differentiating factor for Inditex.

The company uses its own distribution platforms and combines these capabilities with the integration of physical and online stores, to achieve additional capillarity.

But beyond the logistics of Inditex, Pontegadea had not entered this business.

Now he does it almost as a financial investor, because he leaves the management in the hands of Realty Income in exchange for a canon, according to the information provided by the latter in a conference with analysts.

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Source: elparis

All business articles on 2022-09-13

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