Kering buys building in Milan’s via Montenapoleone for $1.4 billion

MILAN (Reuters) – French luxury group Kering said on Thursday it acquired an 18th century building in via Montenapoleone, the heart of Milan’s most exclusive shopping area, for 1.3 billion euros ($1.4 billion), from Blackstone Property Partners Europe.

Kering’s deal is the latest in a series of acquisitions of buildings in top fashion locations by big luxury groups.

The building, which already hosts Saint Laurent’s store, is developed over five floors. It includes more than 5,000 square meters of retail space, making it one of the largest properties in via Montenapoleone, according to the statement.

“This investment is part of Kering’s selective real estate strategy, aimed at securing key highly desirable locations for its houses,” the group said in a statement.

Kering, which last month warned that its first-quarter sales were likely to drop by around 10%, added that it aimed to manage its real estate portfolio with the goal of retaining a stake in its prime assets alongside co-investors in dedicated vehicles, as it did for a building for its Italian label Bottega Veneta in Tokyo.

($1 = 0.9215 euros)

(Reporting by Elisa Anzolin; Additional reporting by Mimosa Spencer in Paris; Editing by Gavin Jones and Muralikumar Anantharaman)


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