Amancio Ortega, the billionaire founder of the Zara clothing chain, has agreed to buy New York’s 19 Dutch apartment building.
Ortega’s holding firm Pontegadea has reached an accord to acquire the 64-floor luxury apartment complex for about $500 million, according to details published by trade publication The Real Deal and confirmed by a spokesperson for Ortega. The building was sold by Carmel Partners.
Pontegadea channels the dividends Ortega, 86, receives from his 59% stake in fast-fashion giant Inditex SA to a portfolio focused on premium commercial and residential real estate in cities from Seattle and Toronto to London and Barcelona. Inditex owns several brands, including Zara.
Earlier this year, Pontegadea bought an office building in Glasgow for about 200 million pounds ($237 million), as well as the Royal Bank Plaza in Toronto for C$1.2 billion ($916 million).
The firm bought the iconic, gold-clad tower in Canada’s financial capital from Oxford Properties, the real estate arm of Ontario’s pension fund for municipal workers, and Canada Pension Plan Investment Board.
While Ortega’s investments mostly focus on real estate, he’s also been diversifying in recent years into infrastructure.
Pontegadea owns a stake in an undersea telecommunications cable firm with Telefonica SA and in power and gas transmission networks in Spain and Portugal.
Ortega’s firm has also invested in a renewable energy project with Repsol SA and last year bought a stake in Portuguese power and gas grid operator REN – Redes Energeticas Nacionais SGPS SA. He also owns stakes in Enagas SA and Spanish grid operator Red Electrica Corporacion SA.
Ortega is Spain’s wealthiest person and is the 23rd-richest person in the world with a $48.5 billion fortune, according to the Bloomberg Billionaires Index. His wealth has taken a $19 billion hit this year after Inditex’s share price tumbled 18%.
Marta Ortega took over as chairwoman of her father’s retail empire earlier this year after her predecessor Pablo Isla left the role.
–With assistance from Macarena Munoz.
This article was provided by Bloomberg News.
