They livened up the investment market at the beginning of this year, and they've decided to do it again as 2025 draws to a close.
After creating a joint venture for a portfolio of three Paris properties at 26 Place Vendôme, 35-37 Avenue Montaigne and 56 Avenue Montaigne, Kering, a multinational luxury goods company that owns brands such as Gucci and Yves Saint Laurent, and Ardian, a global private investment firm, have decided to repeat the same scheme, paying $900 million, or €766 million, for 715-717 Fifth Ave. in New York.
The pair announced the finalization of a co-investment agreement with immediate effect concerning the Kering-owned building on the famous New York avenue, an agreement initially unveiled by Reuters and detailed by Business Immo on June 10.
The building, which totals some 10,700 square meters or just over 115,000 square feet on several levels, is located at the corner of 56th Street and opposite Trump Tower, where the group has leased a boutique for its Gucci brand since 2008. In 2024, Kering paid $963 million or €885 million to acquire this site from Wharton Properties, as reported by Business Immo on January 22.
Thus, in line with the partnership already concluded earlier this year in Paris, Kering is contributing this property to the newly created joint venture with Ardian, which will hold a 60% stake, while the French luxury group headed by François-Henri Pinault will retain 40%. "Kering's interest in the JV will be accounted for using the equity method from today," according to the statement, which refers to a transaction worth $900 million, or €766 million, for which Kering will receive a net amount of €690 million, or €587 million.
Ardian's first acquisition in the United States
Jean-Marc Duplaix, chief operating officer of Kering, added: "As we continue to implement our strategy for managing our real estate portfolio, we are building on our successful collaboration with Ardian, a leading investment company." "Like the investment agreement signed in Paris, this agreement once again enables us to secure a prime retail location for our Houses over the long term, while strengthening our financial flexibility."
For her part, Stéphanie Bensimon, member of Ardian's executive committee and head of real estate, says she is "delighted" to continue the partnership with Kering. "715-717 Fifth Avenue offers us exceptional visibility and long-term value," she says. "This is Ardian's first real estate investment in the United States, marking our strategic expansion in this particularly attractive market."
For the record
Ardian's advisors on this transaction include Lacourte Raquin Tatar, Hogan Lovells, Arendt, Arsène Taxand, White & Case, PWC, Goldman Sachs and EastDil.