Kering is selling off most of its stake in a prestigious Milan building just two years after acquiring it for a billion and a half dollars.
The French luxury-fashion group, owner of Gucci and other high-end brands, said Wednesday that it will sell the asset to a newly formed joint company held 80% by Qatari investment fund Al Mirqab. Kering will retain a stake of 20% in the company. The group will get immediate proceeds of 729 million euros ($842.3 million) on closing, with another 432 million euros to be paid in five years, it said.
The deal comes barely two years after Kering agreed to acquire the historic building, situated on a corner of the glamorous Quadrilatero della Moda in a swanky part of Italy's business and fashion capital. The group in 2024 paid around 1.3 billion euros to a subsidiary of Blackstone for the building. It said at the time that the investment was part of a strategy aimed at securing top locations for its fashion houses.
The decision to sell the building comes as Kering, under the new leadership of former Renault boss Luca de Meo, looks to move on from a difficult period for the group, which has seen Gucci struggle with falling sales. Last year, the company sold stakes in real-estate assets in Paris and New York, and in October it reached a deal to sell its beauty business to French giant L'Oreal for some $4.7 billion.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
Luca de Meo is a businessperson who has been the head of 5 different companies. Presently, he is Chief Executive Officer of Renault SA and Chairman at Renault SAS (a subsidiary of Renault SA). He is also on the board of Sociedad Española de Automóviles de Turismo SA (former Chairman-Management Board & Director).
In the past Mr. De Meo was Director-Sales & Marketing for AUDI AG, Chief Executive Officer for Fiat Automobiles SpA, Chief Executive Officer of Alfa Romeo SpA, Vice President for Lancia Automobiles SpA, General Manager-Product Planning at Toyota Motor Europe NV, Chief Marketing Officer for Fiat SpA and Head-Marketing at Volkswagen Group Italia SpA.
A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ginori 1735, as well as Kering Eyewear and Kering Beauté.
By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow's Luxury in a sustainable and responsible way. It captures these beliefs in its signature: Empowering Imagination.
In 2025, Kering had 43,731 employees and restated revenue of EUR 14.7 billion.
At the end of 2025, the Group had a network of 1,719 stores under its own management, located primarily in Western Europe (361), Japan (225), Asia-Pacific (666) and North America (308).
Net sales are distributed geographically as follows: France (5.6%), Western Europe (24.5%), Japan (7.9%), Asia/Pacific (28.6%), North America (24.2%) and other (9.2%).
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