Spanish billionaire and Zara founder Amancio Ortega is in talks to buy several warehouses in the United States rented by global firms such as Amazon (AMZN.O) and FedEx (FDX.N) for $905 million, Ortega’s family office Pontegadea said on Tuesday.
The deal follows the purchase in recent months of two other distribution centers in Wisconsin and Pennsylvania for $35 million and $148 million respectively, the company added.
The Spanish newspaper El Pais, which reported the deal earlier on Tuesday, said the assets are strategically located and rented with long-term leases to blue-chip companies such as Amazon, FedEx, TJX , Home Depot (HD.N) and Nestle (NESN.S).
Pontegadea, which has invested most of its wealth in real estate assets such as skyscrapers and office buildings around the world, said it is now looking for highly profitable assets with medium- and long-term leases with solid tenants and these warehouses tick all the boxes.
Storage providers have become a crucial part of global supply chains with the boom in e-commerce while demand for commercial real estate has declined.
Earlier this year, Ortega’s investment firm acquired a 64-floor skyscraper in New York’s financial district and the landmark Canadian building of Toronto’s Royal Bank Plaza.
The main shareholder and founder of giant fashion retail group Inditex (ITX.MC), Ortega is one of the world’s 30 wealthiest entrepreneurs. He also invested recently in Spain’s energy infrastructure.