Kering sells majority stake in New York property to cut debt

Luxury fashion group Kering, owner of Gucci, has sold a 60% stake in a prime New York property to private equity firm Ardian for $690 million, as part of a strategy to reduce debt and strengthen its finances amid slower fashion profits.

The 715-717 Fifth Avenue property is valued at $900 million, slightly below the $963 million Kering paid in 2024. Kering retains a 40% stake in the newly formed joint venture with Ardian. The deal follows a similar arrangement in Paris earlier this year, where the group sold a majority stake in three real estate assets to Ardian, freeing €837 million.

Jean-Marc Duplaix, Kering’s chief operating officer, said the deal secures a long-term, high-profile retail location while enhancing the company’s financial flexibility. The move comes amid declining profits in handbags and fashion, and after Kering sold its beauty division to L’Oreal for $4.7 billion in October.

The sale reflects a broader trend among luxury groups to monetize real estate assets to strengthen balance sheets, maintain credit ratings, and support ongoing investments in core brand operations.