Kering Secures Milan Luxury District Building for $1.4 Billion

Kering, the French luxury group known for its high-end fashion brands, has finalized the acquisition of an 18th-century building in Milan's prestigious shopping district, Via Monte Napoleone, from Blackstone Property Partners Europe. The transaction, valued at €1.3 billion ($1.4 billion), involves a property that provides over 5,000 square meters of retail space across five floors and already hosts a Saint Laurent store. This purchase represents Italy's largest single asset transaction to date and is a strategic move by Kering to ensure ownership of key locations for its brands.

The building, located in the heart of the Quadrilatero della Moda, is part of Kering's selective real estate strategy aimed at securing highly sought-after locations. Kering intends to maintain stakes in these prime assets alongside co-investors through dedicated investment vehicles. This approach mirrors Kering's previous investment in Tokyo for its Italian label Bottega Veneta. Despite Kering warning earlier this year of an anticipated 10% drop in first-quarter sales, the company continues to invest heavily in prime real estate, following its near $1 billion acquisition of property on New York City's Fifth Avenue.