Zara boss buys iconic building on Madrid’s Gran Via

LAST UPDATED: 1 Feb, 2015 @ 14:47
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granvia madridSPAIN’S richest man has added another dazzling piece to his impressive real estate portfolio.

Founder of Inditex – which owns Zara – Amancio Ortega has bought number 32 on Madrid’s Gran Via, valued at a cool €400 million.

The self-made billionaire is now effectively the landlord of rival clothing companies like H&M, Mango and soon even Primark.

Irish clothing retailer Primark is to open a three-floor, 9,000m square flagship store in the nine-storey building designed by Teodoro de Anasagasti in 1924.

Bought through Ortega’s real estate investment company Pontegadea, the 36,376m square Gran Via building was previously owned by a consortium that included Europe’s largest pension fund, Dutch AGP, British insurance group, Phoenix Group, private equity firm Sun Capital and was led by Drago Capital.

A statement from Drago Capital read: “Reinstating commercial use to this building will enable the revitalisation of the area as one of Madrid’s major commercial arteries, and will help restore adjacent streets and boost the economy of the area.”

The purchase follows Pontegadea’s criteria of being well-placed commercial real estate, already healthily occupied.

Ortega, the world’s fourth richest man according to Forbes magazine, with an estimated €55,19 billion net worth, already owns the iconic Torre Picasso in Madrid and snapped up the headquarters of mining multinational Rio Tinto in London’s St James square for €315 million this month.

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7 COMMENTS

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  1. But the doomsters said no-one would invest in Spain this year!!! ;) Surely billionaires Wang Jianlin and Amancio Ortega would be better listening to our resident group of experts here?????

  2. He’s not really investing as such, he’s just bulk-buying property that has hit rock-bottom, so that, ultimately, he can charge his tenants more money (especially now that landlords can increase their rates). Some of Ortega’s tenants were reported in the press to be his direct competitors, and therein lays the most likely reason that he has purchased these particular properties.

  3. Fred, Give Us A Quid etc etc aka DBMarcos99 was posting about Jianlin on another forum whilst The Olive Press was down for a while, talking of doomsters here yet again the man who sells 3 books for 4 quid (Quiddy Lol) sounds more like a scratched record. Lol Chinese have been buying up loads of property in the UK and other countries too!

  4. Chinese are investing all over the world. They are Americas biggest investor. They also invest heavily in Africa, does that mean it will be the next big thing.

    Quiddy sounds very naive. Does he not realise that all investment portfolios include a bit of risk. Equivalent to having a tenner on the 3.30.

  5. Guess what Marion, Jianlin is investing heavily all over the world, what’s he’s investing in Spain is small fry compared to his investments in UK, Australia, India, America. Apparently going to invest £3 billion in regeneration projects in Britain. Fred was right to say that Jianlin is buying up cheap property and land although there’s a question mark whether he’s actually bought the land in Spain yet, only that Madrid building and a piece of a football club.

    Got to laugh at the one man band forum where the site owner says ‘Yes, it’s curious how keen this guy is on Spain, I wonder why’ He must lead a sheltered life in Barcelona to ask that (chicken feed), Jianlin’s investments are much bigger worldwide, huge in fact.

  6. Other billionaires such as Carlos Slim and Amancio Oretega (Zara boss) have also invested in Spain, so it’s not just the Chinese billionaire! Incidentally both the Times and Telegraph have reported increasing interest in Spain and other Euro countries, thanks to attractive prices and the lower Euro. Word is, the Evening Standard is sending a team out to Madrid this week to talk about the Spanish renaissance!!!

  7. ‘Word is’? Lol good to be in the know DBMarcos99 Give us a Quid, ‘word is’ that luxury high end group Primark are opening in Madrid too Lol Other billionaires investing in London and UK, and many other safe havens!

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