Kering bought a 1.3 billion building in the Milan Fashion District

On the morning of April 4, the French luxury conglomerate Kering announced the acquisition of a historic building on via Monte Napoleone for approximately 1.3 billion euros. As reported by Forbes, this is the largest transaction ever made for a single asset in Italy, passing from the American investment company Blackstone to the luxury fashion giant. The building, located in the Quadrilatero della Moda, spans five floors and features eighteenth-century architecture. The building covers approximately 11,800 square meters, of which 5,000 are commercial spaces, and currently hosts the boutiques of Prada, Saint Laurent, and the historic pastry shop Cova on the ground floor. The transaction is expected to be completed by July 2024.

Owned by Blackstone since 2021, the building was purchased for 1.1 billion after the company acquired 100% of Reali Compagnia Italiana. The operation made the American company the owner of 14 trophy assets, including Caffé Cova, Bar Magenta, and Melià Hotel in Piazza della Repubblica. Kering's choice to invest in exclusive real estate is part of a very specific strategy: as explained in the announcement, the group intends to «secure highly prestigious and sought-after positions for its maison», focusing on «the proactive management of its real estate portfolio with the short and medium-term goal of maintaining a stake in its most important assets together with co-investors in dedicated vehicles.» This means that the investment in a record-breaking prestigious asset was decided not only to enable the conglomerate's maison to open new stores in exclusive locations but also to increase their value.