Ortega adds Luxembourg to his portfolio

Amancio Ortega’s property investments have spread to Luxembourg with the acquisition of the Royal Park office block.

The 85-year-old Inditex founder, who remains the clothing empire’s principal shareholder, has paid €165 million for the building in the centre of Luxembourg city via Pontegadea Group, his investment vehicle.

The newly-renovated 10,000-square complex, which is 95 per cent leased to law firms and private equity companies, belonged until now to Baltisse, an investment holding group that is owned by Belgian businessman Filip Balcaen.

Baltisse’s attempts to sell the building to Generali, the Italian insurance company, or German asset managers, Union Investment, fell through in 2023. Ortega is now believed to have bought at a lower price as the Pontegadea transaction would have been an outright sale.

In 2022, the last year with available figures,  Pontegadea’s property portfolio was worth more than €18 billion as the company diversified with logistics and energy assets.