Kering and Ardian, jv for New York real estate

A transaction that lightens the position of Kering's accounts and allows Ardian to land in New York. Indeed, the two companies have announced the signing of a joint venture in relation to Kering's property at 715-717 Fifth Avenue, in the heart of New York. The space boasts an exceptional location on one of the world's most iconic avenues. The luxury retail space is spread over several levels with a total area of approximately 10,700 square metres.

As a result of the partnership concluded at the beginning of the year, Kering will contribute this asset to a newly formed joint venture with Ardian, which will hold a 60% stake, while Kering will retain the remaining 40%.

The transaction is worth USD 900 million (EUR 766 million), with net proceeds for Kering of USD 690 million (EUR 587 million).

"As we continue the implementation of our real estate portfolio management strategy, we are continuing our fruitful partnership with the leading investment company Ardian," says Jean-Marc Duplaix, Chief Operating Officer of Kering. "As with the investment agreement signed in Paris, this transaction allows us to secure another high-profile and long-term retail location for our Maisons, while strengthening our financial flexibility.

The future of Kering's Milanese property at 8 Via Montenapoleone, which Blackstone bought for around EUR 1.3 billion, now remains to be defined. The building was acquired by the Americans from Blackstone in 2021 as part of a portfolio of iconic properties. Located at one of the most important intersections of the Quadrilatero della Moda (Fashion District), the 18th-century building has five floors with a total of 11,800 square metres of gross floor area.