INTERNATIONALReal Estate News

Gucci owner Kering secures $1.3 Billion in strategic Paris property sale

Luxury giant Kering, owner of brands like Gucci and Saint Laurent, has announced the sale of 60% stakes in three prime Paris properties to French private equity group Ardian for โ‚ฌ837 million (approximately AUD 1.3 billion).


The Financial Times reported that the move is part of Kering’s strategy to unlock cash while retaining operational control of key retail locations.

The properties include the historic Boucheron jewellery headquarters on Place Vendรดme and flagship stores for Valentino and Balenciaga on Avenue Montaigne.

Despite the sale, Kering will retain 40% ownership and guarantees its brands’ continued occupancy of the spaces.

Jean-Marc Duplaix, Kering’s deputy CEO, described the deal as a way to maintain “highly prominent retail locations while preserving financial flexibility.”

This sale comes as Kering faces challenges in bolstering its premium offering and reviving its flagship brand, Gucci, which accounts for two-thirds of its profits.

Last year, Kering issued rare profit warnings, and its shares have dropped 38% over the past year, leaving the company with a โ‚ฌ27 billion market valuation.

Kering and other luxury groups have aggressively invested in high-profile real estate to solidify their market position, recently acquiring properties in Milan and New York.

However, CEO Franรงois-Henri Pinault emphasised that Keringโ€™s real estate investments are driven by strategic necessity rather than a broader portfolio strategy.

He said the partnership with Ardian balanced prime property access with financial flexibility.

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Catherine Nikas-Boulos

Catherine Nikas-Boulos is the Digital Editor at Elite Agent and has spent the last 20 years covering (and coveting) real estate around the country.