Inditex Amancio Ortega restructures Pontegadea and raises the value of its real estate empire to 15,000 million euros
The pandemic has not left anyone indifferent, not even the great fortunes.
Proof of this is the impact that the coronavirus has had on the accounts of the Pontegadea Group, the investment arm of
, founder of
and one of the richest businessmen in the world.
Its profit at the end of 2020 reached 666 million euros, 62.5% less than the
in 2019, mainly due to the reduction in income during that period, according to the data that the group has deposited in the Registry this week.
Specifically, the turnover decreased from
in 2019 to
This decrease is marked by the reduction of the dividend received by Inditex (of which Grupo Pontegadea owns 59.29%), which stood at 646 million in 2020 compared to 1,626 million in 2019 as a result of the measures taken by the textile group to alleviate the impact of the pandemic on their accounts.
In addition to the stake in Inditex, Pontegadea held relevant financial
(5%) at the end of the year, and dividend income from both amounted to 23 million euros more.
Real estate empire
Apart from these holdings, the investment arm of Amancio Ortega has
its other great prop
real estate sector
and relies on it through asset management through subsidiaries in nine countries.
Net income from the real estate business in 2020 reached 613 million euros, compared to 621 million the previous year.
However, the most striking thing about this segment has to do with the loss of value of the Pontegadea real estate portfolio as a result of the effects of the coronavirus.
The strategy in the
of the founder of Inditex is based on acquiring top-level assets to rent them out to large companies and leading companies that provide stability and a recurring business for Ortega.
The telecommuting boom and the impact of Covid-19 on global economic activity has reduced the value of the current portfolio, which includes assets such as the
Troy Block and Arbor Blocks complexes
815 Connecticut Avenue in Washington DC or
The Post Building
in the United Kingdom.
The joint market valuation has gone
from 15,163 million euros in 2019 to 14,075 million
in 2020, according to the independent appraisals carried out in each of the markets. Once the currency effect has been eliminated, the decrease in the value of the portfolio is less than 5%, given that the quality of the assets that make it up has offset the impact of the pandemic. This currency effect also affects the consolidated income from the real estate business.
The group's balance sheet at the end of 2020 includes a
financial debt of 1,022 million euros
(1,091 in 2019) and treasury and equivalents for a value of 802 million.
The net debt position is therefore € 220 million.
The balance also includes donation commitments to the Amancio Ortega Foundation for an amount of 163 million euros.
According to the criteria of The Trust Project
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