Amancio Ortega, the founder of Zara’s parent company Inditex, is planning to make a $905 million investment in buying warehouses currently rented by major U.S. retail and logistics companies such as Amazon and FedEx.
The acquisition plans come on the heels of Ortega’s recent purchase of two other distribution centers in Pennsylvania and Wisconsin in deals valued at $148 million and $35 million, respectively.
Many of these assets that Ortega is buying over have long-term leases with several blue-chip companies such as Amazon, FedEx, Home Depot, TJX, and Nestle.
The move to acquire warehouse spaces marks a shift in the strategy for Ortega, whose real estate holdings are operated by his family office Pontegadea. His company has long invested in assets such as office buildings and skyscrapers but is now more interested in profitable assets that promise to deliver uninterrupted cashflow, Reuters reported.
The shift in Pontegadea’s strategy comes as demand for commercial real estate has declined amidst the transition to a hybrid and remote work culture. In contrast, demand for storage facilities has boomed due to growth in eCommerce.