Zara founder acquires logistics assets for $722M
Pontegadea, the family investment firm of Zara founder Amancio Ortega, acquired five logistics centers in the U.S. from Realty Income for about $722 million, according to reports citing Spanish newspaper El País.
- The deal comes on the heels of the family office's $183 million purchase of logistic assets from Realty Income, announced last week.
Details: The centers are located in Tennessee, South Carolina, Virginia, Pennsylvania and Texas, and have long-term lease agreements with the likes of Nestlé, Amazon and FedEx.
State of play: Transportation and logistics deal activity increased 6% in the 12-month period ended May 15 to $246 billion, according to consulting and accounting services group PwC.
- The Amazon-led push toward e-commerce has caused the U.S. logistics market to balloon in recent years.
- Pandemic-induced online shopping behaviors further augmented the market.
- Private equity players like KKR and Blackstone have made their own bets, buying up warehouses and industrial properties.
Of note: With supply chain services in high demand, Prologis saw its stock soar late last year to more than $170 per share.
- The company also announced a $26 billion all-stock merger with Duke Realty in June.
What we're watching: The move marks Pontegadea’s entry into a new arena of real estate, but it's not Ortega's first rodeo.
- The exec should have a deep understanding of logistics, given fast fashion retailer Zara's ability to take a concept from drawing board to store rack in a matter of weeks.