The Financial Times reported that the move is part of Kering’s strategy to unlock cash while retaining operational control of key retail locations.
The properties include the historic Boucheron jewellery headquarters on Place Vendôme and flagship stores for Valentino and Balenciaga on Avenue Montaigne.
Despite the sale, Kering will retain 40% ownership and guarantees its brands’ continued occupancy of the spaces. Jean-Marc Duplaix, Kering’s deputy CEO, described the deal as a way to maintain “highly prominent retail locations while preserving financial flexibility.”
This sale comes as Kering faces challenges in bolstering its premium offering and reviving its flagship brand, Gucci, which accounts for two-thirds of its profits.
Last year, Kering issued rare profit warnings, and its shares have dropped 38% over the past year, leaving the company with a €27 billion market valuation.
Kering and other luxury groups have aggressively invested in high-profile real estate to solidify their market position, recently acquiring properties in Milan and New York.
However, CEO François-Henri Pinault emphasised that Kering’s real estate investments are driven by strategic necessity rather than a broader portfolio strategy. He said the partnership with Ardian balanced prime property access with financial flexibility.
