Foto Macy Sinreich for Forbes; Images by Lago Lopez/AP; Gwengoat/Getty Images
The founder of Zara, whose fortune is estimated at $141 billion, in recent years has become one of the most influential, but at the same time the least public player in the global real estate market, writes Forbes. Through his investment holding Pontegadea, he buys office towers, hotels, industrial facilities and infrastructure assets, betting on “trophy” real estate in the world’s largest cities.
Last year alone, Ortega spent more than $3 billion on acquisitions in 10 cities and 8 countries. Among the deals is the purchase of the historic Canada Post building in Vancouver for about $850 million, which became the largest office deal in Canadian history. The facility occupies an entire city block and is fully leased to Amazon.
The purchase was just one of 13 deals during the year. The portfolio also included office buildings, hotels, industrial complexes, high-end shopping centers and a stake in a major British port operator. In total, since Inditex went public in 2001, Ortega has invested about $24 billion in 216 properties in nearly 100 countries, retaining the vast majority of assets.
Experts note that Pontegadea’s strategy is radically different from classic real estate funds. The company uses almost no debt, buys assets for cash and holds them for decades, focusing on stable rental income rather than resale. The company’s debt level is only about 2% of assets.
Ortega’s portfolio includes landmark properties like Torre Picasso in Madrid, Devonshire House in London, Troy Block in Seattle and Royal Bank Plaza in Toronto. Their tenants include some of the world’s largest corporations, including Amazon, Apple, Meta, Nike and Spotify.
Such a large-scale accumulation of assets has a financial background. According to Forbes, the ownership structure through Pontegadea allows Ortega to significantly reduce his tax burden by reinvesting Inditex dividends in assets that fall under the family business exemption. This has saved him billions of dollars over the past decades.
Despite the empire’s scale, its management remains extremely compact, with about 90 employees and a narrow board of directors that includes Ortega himself and his family. The company does not aggressively pursue profitability, preferring stable cash flow and capital preservation.
Today, Ortega is already gearing up for major new investments, including involvement in multibillion-dollar infrastructure deals. And, judging by the pace of his investments, his real estate empire will continue to expand, cementing his status as the world’s largest “quiet real estate tycoon”.
