Gucci owner sells €837m stakes in Paris properties to private equity firm Ardian

Kering, the luxury group behind Gucci and Saint Laurent, has sold 60% of its stakes in three prime Paris properties to French private equity firm Ardian for €837m.

The properties, located in Place Vendôme and Avenue Montaigne, house flagship stores for Balenciaga, Valentino, and Boucheron. Kering will retain 40% ownership and secure its brands’ continued presence in the spaces.

The sale allows Kering to free up capital while keeping control of key retail locations. “This partnership ensures long-term access to prominent retail sites while preserving financial flexibility,” said Kering Deputy CEO Jean-Marc Duplaix. Ardian’s real estate head Stéphanie Bensimon described the deal as “transformative” for luxury brands’ real estate strategies. The transaction is set to close in early 2025.

Kering’s decision comes as it faces mounting challenges. Gucci, its largest brand, has struggled, contributing to a 38% drop in Kering’s share price last year. Despite recent acquisitions, including properties in Milan and New York, Kering insists its real estate investments are aimed at supporting its labels rather than building a portfolio.

The properties in the deal include the historic Boucheron building, renovated in 2018, and flagship stores for Balenciaga and Valentino. The transaction reflects Kering’s focus on balancing operational needs with financial prudence as it navigates a competitive luxury market.

Source: Financial Times