Kering sells a majority stake in a Milan building for over one billion euros

Kering, which announced the acquisition of this building for approximately 1,3 billion euros in April 2024, "is contributing this asset to a newly formed joint-stock company, 80% owned by Al Mirqab Group and 20% by Kering," it said in a statement Wednesday.

The giant company says it received 729 million euros when the deal was finalized, while the additional 432 million euros will be paid to it five years later.

Located at the corner of Milan's Quadrilatero della Moda, "this 18th-century building is one of the most important on Via Monte Napoleone and occupies an emblematic position in the heart of the city's most prestigious district," Kering argues in its press release.

He explains that he is seeking to secure key locations for his homes, while also strengthening his financial flexibility.

Kering, which is undergoing a major transformation, has already announced this type of partnership before, notably for a portfolio of assets in Paris including the Hôtel de Nocé, Place Vendôme, and two buildings on Avenue Montaigne, starting in early 2025.

Following this transaction, the investment company Ardian acquired a 60% stake in this real estate portfolio, with Kering retaining the remaining 40%.

In December, it signed a new agreement with Ardian for the sale of its Fifth Avenue building in New York for €766 million. Kering also indicated that it held a 40% stake in the joint venture created with Ardian, which owns the remaining 60%.

The group (Gucci, Yves Saint Laurent, Balenciaga...), which saw its net profit divided by more than ten in 2025, has been engaged in a restructuring since the arrival in September of its new CEO, Luca de Meo, the former head of Renault.