The millionaire investment in properties of Amancio Ortega, the owner of Zara: how much does he earn for renting them

The entry of Amanacio Ortega , founder of the clothing brand Zara and one of the richest men in the world, into the real estate world is not new. The businessman has been a major investor in this sector for several years now. But recently, the growth of his investments in this market has begun to stand out, which ended 2020 with assets in the United Kingdom valued at 3,275 million euros (or approximately $3,875 million) .

These numbers surprised those who followed the finances of Pontegadea , a company with which Ortega manages his personal investments, because they are only 1.4% higher than those of 2019 (40 million pounds), despite the fact that the British subsidiary of the firm recorded having bought a new property for almost 190 million pounds sterling (264 million dollars) .

This was justified by the instability currently experienced in the United Kingdom due to Brexit and the coronavirus pandemic, although the company assured that both factors did not change the business model that has been carried out both in the United Kingdom and in the rest. of the countries where they have invested .

And with this the questions arose: what is the business model of this company? What are the properties in your portfolio?

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THE REAL ESTATE PORTFOLIO OF ORTEGA

According to the information detailed in the Pontegadea reports, the company has most of its investments in different areas of Spain , while it also has assets in several major cities in Europe, including Paris , Berlin , Rome , Lisbon and London .

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His Spanish assets include twenty properties distributed along Paseo de la Castellana, Serrano, Recoletos, Ortega y Gasset (Madrid) and Paseo de Gracia or Via Laietana (Barcelona). As for its most important purchases, the last one was made in London , where the headquarters occupied by the Cinven fund in the central St James square were obtained, for an operation it was valued at 220 million euros .

ALMOST 105 MILLION IN RENTALS

It also highlights the large rents that they manage to bill thanks to the investments made by Ortega, with the report of the British subsidiary of Pontegadea assuring that in total they managed to collect almost 105 million euros (US $ 125 M) in rents and rents during the last year.

The official report ensures that they entered 90.7 million pounds sterling , an increase of 24% compared to the 73.4 million reported in 2019 . It should also be taken into account that between both years there was a significant increase in assets, which is why there was an increase in income.

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Likewise, the pandemic had an effect on the company's finances, since future rents suffered a drop compared to what was projected. Contracts for 70 million pounds were arranged, somewhat less than the 73 million that were expected to be achieved the previous year. While in the amounts to be received for long-term rentals -which are for more than five years- there was also a setback. In these, it went from 645 to 624 million .

With all this in mind, the company's total turnover closed at a total of 102 million pounds (US$141M), which means 15.5% more than in 2019. At the same time, profits grew after deducting operating expenses (US$90M) and profits after payment of taxes (US$66M) .