Gucci owner Kering in talks to sell stake in Fifth Avenue property, sources say

Pedestrians walk past a retail space at 715-717 Fifth Avenue in New York City, U.S., May 27, 2025. REUTERS/Jeenah Moon

PARIS, June 9 (Saudi Arabia Breaking News) – Gucci owner Kering is in exclusive talks with private equity firm Ardian over the sale of a stake in a prime Fifth Avenue property in New York, as part of efforts to cut costs and reduce debt, two sources with direct knowledge of the matter told Reuters.

The French luxury group acquired the property at 715–717 Fifth Avenue in January 2024 for $963 million, securing a key retail location on one of the world’s most famous shopping streets. The building spans 115,000 square feet across multiple stores.

The talks reflect Kering’s broader strategy to monetize parts of its real estate portfolio and manage rising debt, as the luxury sector faces weaker consumer demand.

Kering and Ardian declined to comment on the matter.

Controlled by the family of Chief Executive François-Henri Pinault, Kering’s net debt rose to €10.5 billion ($12 billion) by the end of 2024, from nearly zero three years earlier, following a series of acquisitions that included roughly €4 billion spent on properties in New York, Milan and Paris.

Deputy CEO Jean-Marc Duplaix said earlier this year that Kering aims to raise €2 billion or more through real estate transactions over the next two years.

In January, Ardian took a 60% stake in a joint venture with Kering that included three prime properties in Paris, generating €837 million for the group, which retained a 40% stake.

The discussions regarding the New York property also concern the sale of a stake, the sources said, without disclosing details about the potential value or size of the transaction.

“We continue to work not to resell these assets, but to sell part of them and have a co-shareholder,” Duplaix told shareholders in April, adding that properties in Milan’s Via Montenapoleone, Fifth Avenue, and Tokyo are under consideration.

Maintaining a presence on major shopping streets remains critical for Kering’s brands, which include Balenciaga and Saint Laurent, Duplaix said.

According to Cushman & Wakefield, Via Montenapoleone was the world’s most expensive retail street in 2024, followed by New York’s upper Fifth Avenue.