FashionPortfolio @FashionPortfolio: "Gucci owner Kering buys Milan..."

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Gucci owner Kering buys Milan building for €1.3bn in Europe’s biggest property deal since 2022. 👉 Gucci owner $KER.PA (Kering SA) has bought a retail block on Milan’s top shopping street from $BX (BlackStone Group LP) for €1.3 billion in Europe’s biggest property deals for two years, as intense demand from luxury groups helps high-end retail real estate defy the wider downturn. 👉 The sale of Via Monte Napoleone 8, a building that houses Kering’s Saint Laurent store, as well as Prada and the LVMH-owned Cafe Cova, marks the largest-ever single asset real estate sale by Blackstone in Europe. It is also the latest in a series of large real estate purchases by luxury fashion houses seeking to lock down flagship locations in key global cities. 👉 The race to control these sites has made luxury retail properties one of the niches where large deals are still being done, at a time when high borrowing costs and uncertainty over the wider market have depressed global real estate deal volumes by more than half and made big ticket sales a rarity. 👉 Kering said on Thursday that the investment was part of a “selective real estate strategy, aimed at securing key highly desirable locations for its houses”. The luxury group in January announced the $963 million purchase of a building at the corner of Fifth Avenue and 56th Street in New York, adding to a portfolio of flagship assets in other cities including Paris and Tokyo. 👉 Kering and its larger rival $MC.PA (LVMH Moet Hennessy Louis Vuitton SA) were the buyers in three of Europe’s largest five property sales last year, according to MSCI, with LVMH’s roughly €1 billion purchase from investment firm $BN on the Champs-Élysées in Paris topping the list. Prada in December agreed a $425 million purchase of its New York flagship store. 👉 The Milan deal is the largest single property sale in Europe since March 2022, said MSCI. Via Monte Napoleone commands the second-highest rent of any shopping street in the world, after Fifth Avenue in New York, according to advisers Cushman & Wakefield. 👉 Blackstone bought the Milan property as part of its 2021 acquisition of Reale Compagnia Italiana, a private Italian firm that also owned offices, hotels and residential properties in the city. 👉 The US firm, which is the world’s largest owner of commercial real estate, paid about €1.1 billion for the whole portfolio. It has managed the property with its partner Kryalos, an Italian real estate firm. Read more ❓ www.ft.com/content/abe51c7f-39f1-4aca-b5b6-3a00f2cd2cc9 ✨ $KER.PA and $MC.PA are part of eToro’s @FashionPortfolio Smart Portfolio. This portfolio provides investors with exposure to companies in the various sub-sectors of the fashion world, including high-end, sport, street fashion, and accessories. @FashionPortfolio is part of eToro's Smart Portfolios series, covering innovative themes, and is available at a $500 minimum investment. Your capital is at risk. Past performance is not an indication of future results.

6 Mentioned Show all

KER.PA

Kering SA

BlackStone Group LP

MC.PA

LVMH Moet Hennessy Louis Vuitton SA

KER.PA

Kering SA

MC.PA

LVMH Moet Hennessy Louis Vuitton SA

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