Kering Gets $690 Million for Stake in Fifth Avenue Property

By Adria Calatayud

Gucci owner Kering will receive $690 million for a majority stake in a Fifth Avenue property in a deal with private-equity group Ardian, as the luxury group continues to unload assets to bolster its finances.

The two French companies said Tuesday that Kering would retain a 40% stake in the property and contribute the remaining 60% to a newly created joint venture with Ardian. The property on New York City's Fifth Avenue houses luxury retail spaces totaling 115,000 square feet, they added.

The deal was valued at $900 million, with net proceeds for Kering at $690 million, the companies said.

Kering said the deal is part of a real-estate strategy that aims to secure prominent retail locations for its brands, while enhancing financial flexibility.

For Ardian, the deal for the Fifth Avenue property marks its first real-estate investment in the U.S., the company said.

The companies struck a similar deal earlier this year for a real-estate portfolio in Paris, with Kering contributing the properties to a joint venture with Ardian in exchange for funds while keeping a minority stake in the assets.

The luxury company also agreed to sell its beauty business to L'Oreal in October--an early move by its new chief executive, Luca de Meo, to revive the group's fortunes and reduce its debt pile.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

12-16-25 0215ET