THE WHAT? Kering has finalised a joint venture with investment firm Ardian covering its landmark luxury retail property at 715–717 Fifth Avenue in New York.
THE DETAILS Under the agreement, Ardian holds a 60% stake in the newly created vehicle, with Kering retaining 40%. The Fifth Avenue asset comprises approximately 115,000 sq. ft of multi-level luxury retail space and is located on one of the world’s most valuable shopping corridors.
The transaction values the property at US$900m, generating net proceeds of US$690m for Kering. Kering’s remaining interest in the joint venture will be accounted for under the equity method. The deal follows a similar real estate partnership between the two groups in Paris earlier this year and represents Ardian’s first real estate investment in the US market.
THE WHY? The move reflects luxury groups’ continued focus on monetising high-value real estate assets to improve balance sheet flexibility while maintaining long-term control of flagship retail locations critical to brand visibility and distribution.
Source: Kering
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