In a significant move within the luxury retail landscape, Kering announces its acquisition of an esteemed 18th-century building located in Montenapoleone, Milan’s illustrious shopping district. Valued at a staggering $1.4 billion, this strategic investment shows Kering’s commitment to securing prime real estate assets in key fashion hubs.
Situated at the heart of Milan’s most exclusive shopping area, the newly acquired building boasts a prime location that aligns perfectly with Kering’s upscale brand portfolio. Currently housing Saint Laurent’s flagship store, the property spans five floors and offers over 5,000 square metres of retail space, positioning it as one of the largest properties in Montenapoleone.
Notably, the building also serves as the home of the iconic Cova patisserie, a historic establishment acquired by luxury conglomerate LVMH in 2013. Kering’s latest investment reflects its strategic approach to real estate, focusing on securing coveted locations for its esteemed fashion houses.
With a vision to fortify its foothold in Milan’s luxury district, Kering’s acquisition signifies a calculated move amid market fluctuations. Despite recent warnings of a projected sales decline, the luxury group remains steadfast in its commitment to managing its real estate portfolio, with a focus on retaining stakes in prime assets.
This latest transaction echoes Kering’s proactive approach to real estate management, exemplified by its collaborative efforts with co-investors in dedicated vehicles, such as the successful venture for its Italian label Bottega Veneta in Tokyo. As the luxury landscape continues to evolve, Kering’s strategic acquisitions reaffirm its position as a formidable player in the global fashion industry.
