Zara founder Ortega purchases US warehouse for $109 Million to demonstrate their confidence that logistics remain hot.
Amancio Ortega, leader of Inditex textile group that includes fast fashion stores Zara and Massimo Dutti, purchased one of Walmart’s distribution centers in California this week through his family office. Commercial Observer confirmed details published by Spanish newspaper El Pais that revealed this transaction cost the company $109 million for their facility in Inland Empire Valley, about 60 miles east of Los Angeles. Pontegadea Investment Vehicle of Ortega said their latest purchase was part of their plan to invest in logistics assets across the U.S. The company already owns two logistical centers in Wisconsin and Pennsylvania with long-term lease agreements with global companies including Amazon and FedEx, according to Pontegadea’s statement.
This acquisition comes at a time when global e-commerce has emerged as a key force driving industrial property markets worldwide, especially warehouse warehousing demand. Furthermore, spending patterns have shifted away from services like recreation and restaurants towards warehouse storage requirements, driving up rents in many markets for industrial property leases.
Pontegadea Inversiones SL, Ortega’s investment firm, has spent billions purchasing properties all over the world. It owns properties ranging from skyscrapers and office buildings owned by Meta Platforms Inc in Seattle to Toronto’s Royal Bank Plaza as well as luxury apartments and stakes in energy infrastructure – and was valued at approximately 15.3 billion euros ($15.6 billion as of 2021. According to Bloomberg Billionaires Index rankings, Ortega ranks 22nd. He reinvests much of his income from Inditex back into real estate investments while also holdings in telecom firm Ant Financial Inc telecommunications firm and has stakes in energy infrastructure and energy infrastructure assets valued at about 15.3 billion euros as of 2021.
