Kering sells majority stake in three prime real estate assets to Ardian

Paris – Luxury group Kering (Gucci, Saint Laurent) has signed an agreement with investment firm Ardian for the sale of 837 million euros worth of real estate assets in Paris, the company announced Wednesday.

The portfolio of assets, in which Kering will retain a 40 percent stake, includes the Hôtel de Nocé on Place Vendôme and two buildings on Avenue Montaigne, among the most coveted addresses in the French capital.

“We are very pleased with this partnership, which allows us to secure key locations for the long term while preserving our financial flexibility," said Jean-Marc Duplaix, Kering's deputy managing director. The transaction is expected to be finalised during the first quarter of 2025, the group indicated.

In addition to the Hôtel de Nocé, a private mansion in Paris's 1st arrondissement where the historic Maison Boucheron boutique is located, the portfolio includes two buildings located at 35-37 and 56 Avenue Montaigne. One of these buildings houses a Valentino boutique, in which Kering holds a 30 percent stake with an option to increase it to 100 percent.

This agreement "opens new growth prospects," said Stéphanie Bensimon, a member of Ardian's executive committee, in a press release. In January 2024, the French group led by François-Henri Pinault announced the acquisition of a 10,700 sq. mtr. building on the prestigious Fifth Avenue in New York for 963 million dollars.

Facing challenges, Kering reported a 15 percent year-on-year decline in third-quarter sales in October, dragged down by Gucci, and now expects to end 2024 with a sharp drop in operating profit. (AFP)