Kering Cashes In: Sells 60% Stake in 715 Fifth Avenue for $690 Million

Kering continues to release bricks and mortar to gain lung. The French luxury giant, which is implementing a restructuring plan to correct its evolution, completes the sale of 60% of one of its main real estate assets. The company led by Luca de Meo has transferred to Ardian the majority of the building located at 715-717 Fifth Avenue in New York.

As reported by the company that owns Gucci, Kering and Ardian have created a new joint venture to which the former contributes the asset, which has 115,000 square feet. Ardian will control 60% of the company, while Kering will hold 40% of the shares.

The transaction is valued at $900 million, with net proceeds for Kering of $690 million. The company had taken 715-717 Fifth Avenue in 2024 for $963 million.

Kering has created a joint venture with Ardian to which it has transferred the asset

“As we continue to execute our strategy regarding the management of our real estate portfolio, we are moving forward with our partnership with the investment firm Ardian,“ said Jean-Marc Duplaix, COO of Kering.Kering-; like the investment agreement already signed in Paris, this transaction allows us to secure another highly relevant long-term retail location for our stores, while improving our financial flexibility.“

Last January, Kering sealed the sale of three of its owned buildings in Paris, also transferring them to a joint venture with Ardian, controlled in the same proportion as the one in New York. The three Paris buildings are the Hôtel de Nocé, located at 26 Place Vendôme, and two other properties on Avenue Montaigne. The transaction brought in €837 million for Kering.

In the same month, the French company owned by the Pinault family sold its luxury outlets The Mall to the real estate investment fund Simon. The move brought in €350 million in revenue for Kering.

The sale of real estate assets has been one of the tools used by Kering in recent years to gain liquidity, at a time of weakness in the luxury industry and the main brands in its portfolio. The company is also betting on divesting other assets, such as its cosmetics division, which in October it transferred to L’Oréal for €4 billion.

In this way, the group is taking steps to reduce its indebtedness, which in June amounted to €11 billion.