Kering and Ardian, the Parisian luxury real estate alliance

Luxury goods group Kering sells a majority stake in three emblematic buildings in the heart of Paris. A strategic transaction in partnership with Ardian.

Kering, owner of prestigious brands such as Gucci, Balenciaga and Saint Laurent, has entered into a major alliance with investment company Ardian. The decision concerns three exceptional properties in the heart of Paris’s golden triangle, a symbol of elegance and luxury worldwide.

Three legendary Paris addresses

The buildings in question are not insignificant. Among them is theHôtel de Nocé at 26 Place Vendôme, currently home to the Boucheron jewelry house. Two other buildings at 35-37 and 56 avenue Montaigne, emblematic arteries of Parisian luxury, complete the list. This sale is in line with Kering’s strategy of increasing the value of its prestige assets, following strategic acquisitions in New York and Milan in recent months.

A joint venture to secure the future

The deal is based on the creation of a joint venture in which Ardian now holds a 60% stake, compared with 40% for Kering. This partnership brings the luxury goods group the substantial sum of 837 million euros, while enabling it to retain partial control over these prestigious addresses. According to Jean-Marc Duplaix, Kering’s Deputy Managing Director, this agreement is designed to preserve the financial flexibility of the group, which is struggling in a slumping luxury goods market. With sales down 12% in the first nine months of 2024, this strategy is a proactive response to economic challenges.

Outlook for 2025

The agreement between Kering and Ardian should be finalized in the first quarter of 2025, marking a key step in the Group’s real estate management. With a strengthened valuation and solid partnerships, Kering intends to continue to shine in the world of Parisian and global luxury goods.

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