Luxury conglomerate Kering, owner of brands like Gucci and Saint Laurent, has acquired a prime retail building on Milan's Via Monte Napoleone for €1.3 billion. The transaction marks Europe's largest single-property deal in two years and highlights the intense competition among luxury brands for flagship locations.
This purchase aligns with Kering's focused real estate strategy, which prioritises securing desirable addresses for its portfolio of brands. The move follows a similar acquisition of a $963 million building in New York last January, adding to Kering's collection of high-profile properties in major cities.
The Milan building, housing a Saint Laurent store along with Prada and the LVMH-owned Cafe Cova, was sold by Blackstone. Blackstone previously acquired the property as part of a larger portfolio in 2021.
The deal underscores the robust demand for high-end retail real estate, a sector that continues to attract significant transactions even amidst a broader market slowdown. Luxury groups, including Kering and LVMH, have been active in acquiring prominent properties worldwide.
Kering's move comes despite a recent profit warning, primarily linked to slowing Chinese demand for Gucci products. Nonetheless, the company views these strategic real estate investments as crucial to the long-term growth and exclusivity of its brands.
