Kering (EU:KER) has entered into a joint venture with investment firm Ardian for a prime commercial property located on Fifth Avenue in New York, the two groups confirmed on Tuesday.

Under the terms of the deal, Ardian will own 60% of the newly formed vehicle, with Kering retaining the remaining 40%. The transaction values the property at $900 million (€766 million) and is expected to deliver net cash proceeds of $690 million (€587 million) to Kering. Kering’s stake in the joint venture will be accounted for using the equity method with immediate effect.

The asset, located at 715–717 Fifth Avenue, consists of multi-storey luxury retail space covering roughly 115,000 square feet (10,700 square metres). The property is positioned as a long-term strategic retail location within one of the world’s most prestigious shopping districts.

“As we continue to execute our strategy regarding the management of our real estate portfolio, we are pursuing our successful partnership with leading investment firm Ardian,” said Jean-Marc Duplaix, Kering Chief Operating Officer.

“Like the investment agreement already signed in Paris, this transaction allows us to secure another long term highly prominent retail location for our Houses while enhancing our financial flexibility.”

For Ardian, the deal represents its first real estate investment in the United States. Stéphanie Bensimon, Member of the Executive Committee and Head of Real Estate at Ardian, said the Fifth Avenue property offers “exceptional visibility and long-term value.”

Omar Fjer, Head of Real Estate France and Managing Director at Ardian, added that the transaction “reflects Ardian’s expertise in structuring innovative partnerships and securing assets with exceptional fundamentals.”

Kering is a global luxury group with a portfolio that includes Gucci, Saint Laurent and Balenciaga. The group employed around 47,000 people and reported revenue of €17.2 billion in 2024.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.