Kering buys luxury building in Milan for 1,3 billion euros

Located at 8 via Montenapoleone, one of the most popular commercial addresses in the world according to the real estate firm Cushman & Wakefield, the building has a total of more than 5.000 m³ of commercial space, currently occupied by boutiques such as Prada, Saint- Laurent or the famous pastry-confectionery Cova, owned by Kering's competitor, LVMH, which will remain a tenant.

“This investment is part of Kering’s selective real estate strategy, aimed at securing key and highly desirable locations for its homes,” explains the world number two in the luxury industry, owner in particular of Gucci, Saint- Laurent and Balenciaga.

In January, Kering purchased a building on 5th Avenue in New York for nearly a billion dollars (885 million euros). “Kering continues to proactively manage its real estate portfolio,” explains the group, “with the short-to-medium term objective of maintaining a stake in its main assets alongside co-investors.”

The luxury group announced in mid-March that it expected a drop in its turnover "of around 10%" in the first quarter year-on-year, weighed down by the difficulties of its flagship brand Gucci. Kering renewed the management of the Italian brand in 2023, placing one of François-Henri Pinault's closest collaborators, Jean-François Palus, Deputy Managing Director of Kering, at its head.