Kering, the French luxury group behind iconic brands like Gucci and Saint Laurent, is expanding its footprint in the heart of Milan’s exclusive shopping district with a lavish new acquisition. The company announced on Thursday that it has purchased an 18th-century building on via Montenapoleone for a staggering 1.3 billion euros ($1.4 billion) from Blackstone Property Partners Europe.
The acquisition is part of Kering’s strategic push into premium real estate, following a trend among luxury conglomerates to secure prime locations in key fashion capitals. The newly acquired building, which already houses Saint Laurent’s flagship store, spans five floors and boasts over 5,000 square meters of retail space, making it one of the largest properties on via Montenapoleone.
In addition to Saint Laurent, the building is also home to the historic Cova patisserie, which was acquired by rival luxury group LVMH in 2013. Kering’s investment in the property underscores its commitment to securing key locations for its brands.
“This investment is part of Kering’s selective real estate strategy, aimed at securing key highly desirable locations for its houses,” the group said in a statement.
Despite a recent warning of a potential 10% drop in first-quarter sales, Kering remains optimistic about its real estate ventures. The company aims to manage its portfolio with a focus on retaining stakes in prime assets alongside co-investors, similar to its approach with a building for its Italian label Bottega Veneta in Tokyo.
James Seppala, Blackstone’s head of Real Estate Europe, praised the transaction as a success for investors, highlighting the strong demand for high-quality real estate in premier markets. Blackstone had acquired the building in 2021 as part of a larger portfolio of 14 properties, paying 1.1 billion euros for the entire portfolio.
Kering’s latest acquisition in Milan’s fashion hub reaffirms the allure of luxury brands for both consumers and investors, underscoring the enduring appeal of high-end fashion and premium real estate in prestigious locations.
(Source: FT | Reuters | WSJ | MarketWatch)
