Kering Sells 60% of a New York Property to Ardian for $900 Million

Details of the Transaction

According to the press release, Kering has contributed this real estate asset to a newly created joint venture with Ardian, which will hold 60%, while the French group will retain 40%. The transaction amounts to $900 million, equivalent to 766 million euros. Kering will receive a net amount of $690 million, equivalent to 587 million euros. Kering's stake in the joint venture will be accounted for using the equity method starting December 16, 2025. The property in question includes luxury retail spaces spread over several levels, covering a total area of approximately 10,700 square meters.

Strategic Location

The real estate asset is located at 715-717 Fifth Avenue in New York, an address described as exceptional by the company. According to the group, this location is on one of the most iconic avenues in the world. The operation is part of the continuation of a partnership already established between Kering and Ardian earlier in the year. Jean-Marc Duplaix, Deputy CEO of Kering, states that this agreement secures a long-term premier retail location for the group's Maisons, while enhancing financial flexibility. For Ardian, this represents the first real estate investment in the United States, marking a strategic expansion into this market.

Broader Strategic Context

According to the press release, this transaction is part of the execution of Kering's strategy regarding the management of its real estate portfolio. The luxury group, which includes brands such as Gucci, Saint Laurent, Bottega Veneta, Balenciaga, and Boucheron, employs 47,000 people and generated a revenue of 17.2 billion euros in 2024. Ardian, an international investment firm with 22 offices worldwide, manages or advises $196 billion in assets on behalf of more than 1,890 clients. The partnership between the two groups had already led to an investment agreement signed in Paris earlier in the year.