It is not every day that the head of Spain's largest real estate company expresses his opinion about the real estate market. Roberto Sibeira, CEO of Pontegadea, Amancio Ortega's investment company, commented on the company's future activities in Spain as follows: "We have not conducted large operations in the country for several years, although we have paid attention to small transactions. If there is a price adjustment in the future, we will first consider its timing and prospects before making decisions. We are ready to start full-scale investments only when all the criteria for this are met".
During the 9th IESE Real Estate Forum, organized jointly with Savills consulting company and Tinsa appraisal company, Amancio Ortega, director of the investment holding, admitted that in the past they wanted to invest much more in the local market, but they had to abandon this idea, assessing the degree of competition with such large companies in the sector, like Merlin Properties and Colonial. They keep asset prices at an unattractive level.
Pontegadea has a clear investment strategy: large assets, the safest on the market, in large cities and with fairly stable cash flows. Almost 75% of her portfolio is accounted for by Ortega in Inditex. Of the remaining amount, 80-85% is for real estate, and 10% is for infrastructure projects.
Pontegadea investments
Pontegadea sees great investment opportunities in North America and Asia. Sibeira points out: "We see opportunities in America in various types of assets: logistics, offices and commercial facilities with reduced risks. On the other hand, there are fewer opportunities in the residential sector. But the United States is an interesting market due to its liquidity and legal security".
As for Asia, he notes: "Asia has been under a serious blow due to Chinese policies related to COVID-19. The recent opening of China to the rest of the world, after several years of isolation, makes all local markets much more dynamic. As soon as they allow travel to Asia, this market will recover strongly, as the low base effect will work".
Pontegadea, however, excludes the European market from its sphere of interests, where it sees a long-term aggravation of the inflation situation. Now the company indicates: "We want to see how far the European Central Bank is going to go and when the adjustment will take place".