Kering sells majority stake in Milan building for over one billion euros

French luxury group Kering announced on Wednesday it has sold a majority stake in a building in Milan to the Qatari Al Mirqab Group for over 1 billion euros (1.15 billion dollars).

Kering announced the acquisition of the building for approximately 1.3 billion euros in April 2024. In a press release on Wednesday, the group stated it is “contributing this asset to a newly formed joint stock company, 80 percent owned by Al Mirqab Group and 20 percent by Kering”.

The luxury giant stated it received 729 million euros upon completion of the transaction, while the additional 432 million euros will be paid five years later.

Located on a corner of Milan's Quadrilatero della Moda, “this 18th-century building is one of the most important on via Monte Napoleone and holds an iconic position in the heart of the city's most prestigious district,” Kering noted in its statement.

The group explained it seeks to secure key locations for its houses while strengthening its financial flexibility.

Kering, which is undergoing a transformation, has previously announced this type of partnership. This includes a portfolio of assets in Paris, such as the Hôtel de Nocé on Place Vendôme and two buildings on Avenue Montaigne, in early 2025. Following this transaction, investment firm Ardian acquired a 60 percent stake in this property portfolio, with Kering retaining the remaining 40 percent.

In December, it signed a new agreement with Ardian for the sale of its building on Fifth Avenue in New York for 766 million euros. In this case too, Kering stated it would hold 40 percent of the joint venture created with Ardian, which owns 60 percent.

The group (Gucci, Yves Saint Laurent, Balenciaga...), which saw its net profit fall by more than tenfold in 2025, has been undergoing a restructuring since the arrival in September of its new chief executive officer, Luca de Meo, the former head of Renault.

This article was translated to English using an AI tool.

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