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Bloomberg Published December 18, 2024 Reading time
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Kering SA expects to soon secure outside investment for a new entity that would house its real estate assets — including about €4 billion ($4.2 billion) worth of properties in Milan, New York and Paris — as the Gucci owner looks to cut its debt load.
The closing of the deal could come in early 2025, as the company signaled earlier this year. Just in the past year, Kering has bought a building in New York for almost $1 billion and one in Milan for €1.3 billion. In 2023, the company also acquired three choice properties in Paris, located on the fashionable Rue de Castiglione and Avenue Montaigne.
“Kering is considering refinancing a part of its prime real estate properties by welcoming a third-party investor in a dedicated vehicle,” a company spokesman said. “The group is making good progress in that direction and does not envision other options such as a spin-off or an IPO.” Italian daily Il Sole 24reported Wednesday that Kering was considering an initial public offering of a newly created real estate company.
