Amancio Ortega, the founder of Zara, is causing a lot of attention in the renewable energy sector. His investment firm Pontegadea nearly tripled its investments in renewable energy projects last year, committing 693 million euros ($766.87 million) to wind, solar and other energy assets in Spain and France. This is a significant increase from the €273 million invested in 2022, demonstrating Ortega’s commitment to diversifying his wealth beyond his fashion empire and real estate investments.
The move is in line with Zara’s parent company Inditex and new environmental goals set for 2030, which aim to reduce the company’s impact on the environment and meet regulatory requirements. While Pontegadea has traditionally been known for big real estate investments – buying logistics centers for global companies such as FedEx and Amazon, and luxury buildings in the US and Europe – this turn to renewable energy represents a significant shift in strategy.
Ortega’s control over 59.29% of the capital of the Inditex companies, through Pontegadea Inversiones and Partler Participaciones, was key in this diversification. His family office received 2.2 billion euros in dividends from Inditex in 2023, prompting further investment. In addition to energy assets, Pontegadea expanded its real estate portfolio in 2023 by purchasing real estate in Ireland, the Netherlands and Luxembourg, bringing the total value of its real estate to over 13 billion euros.
Pontegadea’s investments are not limited to property. In 2023, the company reported minority stakes in 13 energy assets, mostly located in Spain. These stakes were secured through various deals with Repsol, a major energy company, to acquire interests in wind farms and solar farms. Moreover, Pontegadea holds a minority stake in three wind energy parks in France, specifically in the Montagne d’Ardeche, Taillades Sud and Champagne Picarde regions.
This strategic diversification into renewable energy sources is not entirely new for Pontegadea. In 2022, the company acquired a 5% stake in Spanish gas network operator Enagas and its hydrogen and renewable energy unit, Enagas Renovable. The continued expansion into the energy sector reflects a broader trend among investors who are increasingly looking to align their portfolios with sustainable and environmentally friendly practices.
Despite these significant investments, Pontegadea declined to provide further details on its annual reports, maintaining the level of discretion typical of Ortega’s business. As the global economy turns toward sustainability, Ortega’s moves in the renewable energy sector could position him as a key player in this rapidly evolving industry.
E2 portal (ESG news)
Source: www.e2.rs
