Kering buys building in Milan for €1.3bn

Milan, Italy — French luxury group Kering said on Thursday it acquired an 18th century building in via Montenapoleone, the heart of Milan’s most exclusive shopping area, for €1.3bn, from Blackstone Property Partners Europe.

Kering’s deal is the latest in a series of acquisitions of buildings in top fashion locations by big luxury groups.

The building, which already hosts Saint Laurent’s store, is developed over five floors. It includes more than 5,000m² of retail space, making it one of the largest properties in via Montenapoleone, according to the statement.

“This investment is part of Kering’s selective real estate strategy, aimed at securing key highly desirable locations for its houses,” the group said in a statement.

Kering, which warned in March that its first-quarter sales were likely to drop about 10%, added that it aimed to manage its real estate portfolio with the goal of retaining a stake in its prime assets alongside co-investors in dedicated vehicles, as it did for a building for its Italian label Bottega Veneta in Tokyo. 

Reuters