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The Qatar Investment Authority (QIA) is reportedly exploring the purchase of a stake in Kering's luxury property on Via Monte Napoleone in Milan, which was acquired by the French fashion giant less than a year ago for EUR 1.3 billion. The move comes amid mounting financial pressure on Kering, primarily due to falling sales at Gucci. Kering recently executed a similar transaction with Ardian involving Paris real estate to reduce its debt, which now exceeds EUR 10.5 billion. While Kering declined to comment and QIA was unreachable, Kering's shares surged following relief from U.S. tariffs, potentially boosting investor sentiment.
The Qatar Investment Authority (QIA) is reportedly considering acquiring a stake in a high-profile property owned by luxury conglomerate Kering on Via Monte Napoleone in Milan, according to Italian daily Corriere della Sera, which cited unnamed sources. The property, situated on one of Milan's most prestigious shopping streets, was bought by Kering for EUR 1.3 billion (approximately $1.4 billion) less than a year ago. Neither Kering nor QIA have provided public comments in response to the report. Advertisement
This potential transaction comes at a time when Kering is grappling with mounting financial pressure. The group, known for housing some of the world's most prominent fashion brands, including Gucci, has seen a sharp decline in sales at its flagship label. The downturn in Gucci's performance has raised concerns among investors and placed added stress on Kering's financial strategy.
As of 2024, Kering's net debt has surged past EUR 10.5 billion, a result of several costly acquisitions aimed at expanding the group's brand portfolio. In response, the company appears to be leveraging its property assets to raise capital and ease debt burdens.
A similar move was undertaken earlier this year in January, when Kering transferred ownership of three Parisian properties into a joint venture with investment firm Ardian. In that deal, Kering retained a 40% stake and generated EUR 837 million, which was used to refinance existing liabilities.
The Milan property, located in one of Europe's key luxury retail zones, is seen as a strategic asset. A partial divestment could enable Kering to unlock significant capital while still maintaining a presence in the building.
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