Ardian in exclusive talks to acquire stake in Kering’s $1bn Fifth Avenue property
Ardian is in exclusive negotiations to acquire a stake in Kering’s landmark Fifth Avenue property in New York, in a deal that could value the site at close to $1bn.
The transaction is part of Kering’s ongoing strategy to monetise premium real estate assets while retaining operational presence through joint ventures.
The luxury group acquired the 115,000 sq ft building at 715-717 Fifth Avenue for $963m in January 2024 as part of a €4bn real estate expansion across key global luxury districts.
Now facing €10.5bn in net debt, Kering is seeking to raise over €2bn through property deals over the next two years. In January, the group sold a 60% stake in a Paris real estate portfolio to Ardian for €837m, while retaining a 40% share, signalling a preference for co-ownership rather than full exits.
Sources say the Fifth Avenue deal could follow a similar structure. The transaction is also aligned with Kering’s broader efforts to remain anchored in high-visibility retail locations, including Via Montenapoleone in Milan and prime areas in Tokyo.
“We continue to work not to resell these assets, but to sell part of them and have a co-shareholder,” said Kering Deputy CEO Jean-Marc Duplaix earlier this year.
While both Ardian and Kering declined to comment, the deal underscores growing private equity interest in trophy retail real estate, even as the luxury sector grapples with slowing demand and rising debt burdens.