FM newsroom – real estate. Gucci owner Kering spends EUR 1.3 billion on the new Milan store, making it Italy’s most expensive building. The deal represents the single largest asset sale in the Italian real estate market.
Acquisition in the most expensive street in the world
On the 4th of April, Kering, the global luxury group managing a series of renowned brands like Gucci, Saint Laurent, Bottega Veneta, Balenciaga, and Alexander McQueen announced the acquisition of the company owning the iconic and historic Milanese building in via Monte Napoleone 8, for a consideration of approximately €1.3 billion, from a subsidiary of Blackstone Property Partners Europe – the official announcement informs.
Via Monte Napoleone, known as one of the most expensive streets in the world, has an impressive line of top-end fashion, jewellery and footwear sales locations.
Located on the most prominent corner of the city’s Quadrilatero della Moda, the 18th-century building is developed over five floors, totalling 11,800 sqm gross area. The property includes more than 5,000 sqm of retail space, making it one of the largest in via Monte Napoleone.
Single, largest asset sale in the Italian market
The deal represents “the single largest asset sale in the Italian real estate market,” said Luigi Caruso, senior managing director with Blackstone in London, underscoring “exceptional investor demand for high-quality real estate in the strongest markets.” – The Business Times writes referring to Bloomberg.
This investment is part of Kering’s selective real estate strategy, aimed at securing key highly desirable locations for its Houses. Kering remains focused on proactively managing its real estate portfolio with the short- to medium-term objective of retaining a stake in its prime assets alongside co-investors in dedicated vehicles.
