The Gucci owner digs deep into his wallet to secure his trophy building.
CEO Francois Pinault of the French luxury conglomerate Kering secures a permanent foothold in Europe’s most expensive shopping street. Photo: Francois Guillot / AFP / NTBPublished: Published:
Less than 20 minutes ago
The French luxury conglomerate Kering is shelling out 1.3 billion euros, around NOK 15 billion, for a larger property in Milan’s most fashionable shopping area.
The seller is the American private equity giant Blackstone, which mentions the transaction as “the biggest real estate sale in Italy ever”.
– This transaction represents an excellent result for our investors and shows that there is a great demand for high-quality property in the strongest markets, writes director of community relations, Dafina Grapci-Penney, in Blackstone in an email to E24.
The case was first discussed by Bloomberg.
Europe’s most expensive
BlackstoneBlackstoneThe purchase was made by Blackstone Property Partners Europe Holdings S.à rl, an active equity fund owned by Blackstone Property Partners Europe. bought the property and 13 others for 1.2 billion euros as late as November 2021.
The 18th-century building in Via Montenapoleone 8, with its 11,500 gross square meters and five floors, is the largest property in the Quadrilatero della Moda, in the middle of the historic part of Milan.
The shopping street is also Europe’s most expensive, surpassed only by Fifth Avenue in New York on a worldwide basis.
The building in exclusive Via Montenapoleone 8 today houses, among other things, the Italian fashion house Prada and the French fashion house Saint Laurent, which is owned by Kering. Photo: Blackstone
Will ensure
The commercial part itself is 5,000 square meters.
In addition to Gucci, Kering also owns the fashion houses Saint Laurent, Bottega Veneta, Balenciaga and Alexander McQueen, among others.
“The investment is part of Kering’s selective real estate strategy, which aims to secure important and highly attractive locations for our brands,” Kering writes in a press release.
– The most important
As recently as January this year the luxury conglomerate also raked in $963 millionover DKK 10.3 billion, for a building on Fifth Avenue, New York.
The group has also recently secured key properties on avenue Montaigne and rue de Castiglione in Paris. Kering also owns property in Tokyo.
Inner courtyard of Via Montenapoleone 8. Photo: Blackstone
According to Bloomberg, Kering has over 1,800 outlets for its brands. Nevertheless, the company does not intend to own more than a handful in the most exclusive areas, alone or in partnership with other investors.
“Kering continues to focus on proactive management of the real estate portfolio with the aim of retaining stakes in our most important properties in the short and medium term, together with co-investors in dedicated entities,” writes Kering.
Rich owners
Kering is listed on Paris Stock Exchange, but controlled by the Pinault family, which owns 42 percent.
François Pinault (87) started Kering as a wood and building materials company in 1963.
With an estimated fortune of $32 billion, the founder is number 48 on Bloomberg’s list of the world’s richest.
Kering owner and CEO Francois Pinault is married to Mexican-American actress Salma Hayek. Here they arrive at Vanity Fair’s Oscar party in Beverly Hills, California, in March, 2024. Photo: Evan Agostini / AP / NTB
Today, Kering is managed by his son, François-Henri Pinault (61).
The group had around 49,000 employees and a turnover of 19.6 billion euros, close to NOK 228 billion, in 2023.
The operating result was over 4.7 billion eurosover NOK 55 billion, of which Gucci accounted for around 67 percent.
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