Amancio Ortega buys Toronto’s Royal Bank Plaza

Spanish billionaire and Zara founder Amancio Ortega agreed to buy Royal Bank Plaza. It houses their headquarters of Royal Bank of Canada, the country’s biggest bank, in Toronto for around 800 million euros ($916.88 million). Pontegadea, the family office of the main shareholder of fashion group Inditex, confirmed the deal to buy the landmark Canadian skyscraper. They famed for a series of windows with a 24-karat-gold coating. It was first reported by Bloomberg News in Canada.

Current owners Oxford Properties Group and Canada Pension Plan Investment Board (CPPIB) hired RBC Capital Markets. This is to explore a potential sale. It was expected to fetch more than C$1 billion. Demand for office space in downtown Toronto remains strong, even in this pandemic situation. And that is with a 9.7% vacancy rate in the office market in the fourth quarter of 2021. Royal Bank Plaza, home to leading banks, law firms and technology companies, is located in the heart of Toronto’s financial core. They cover some 1.5 million square feet (139,350 square metres) across its two towers.

Pontegadea has focused on investing in real-estate assets and textile distribution. They became the largest private investor in Spain’s electricity grid operator Red Electrica. This is with a 5% stake. They also bought a 49% stake in a wind farm operated by Spanish energy group Repsol.