Kering, a French-based multinational corporation specializing in luxury goods, has announced the acquisition of the centrally-located Via Monte Napoleone 8 building in Milan in a deal said to be Italy's largest single asset transaction ever.
Kering, the owner of famous brands including Gucci and Saint Laurent, is paying €1.3 bn for the asset, which provides 11,800 m2 of space in the Quadrilatero della Moda high-end shopping district of the city.
The vendor is Blackstone Property Partners Europe which bought the asset in 2021 as part of a package of 14 office and retail properties sold by Reale Compagnia Italiana. At the time, Blackstone paid around the same amount for the portfolio that it is now receiving for just one of the assets. The portfolio also included other inner-city assets such as piazza Repubblica, via Turati, via Verdi, and via Vincenzo Monti.
In a statement, Kering said that the deal is part of its real estate strategy aimed at securing 'highly prestigious and sought-after locations for its Maisons'. The luxury group remains focused 'on the proactive management of its real estate portfolio with the short and medium term objective of maintaining a stake in its primary assets together with co-investors in dedicated vehicles', it added.
The 18th century building is spread over five floors and includes 5,000 m2 of retail space. The asset is let to Saint Laurent, Prada and pastrymaker Cova.
'This transaction represents a great outcome for our investors and demonstrates the extraordinary investor demand for high-quality properties in the most robust markets,' commented James Seppala, head of Real Estate Europe at Blackstone.
The deal is expected to close by July 2024.
Kryalos acted as advisor for for Blackstone. The fund was also assisted by BNP Paribas, Barclays, Eastdil Secured, JP Morgan Securities, RBC Capital Markets and SMBC Nikko Capital Markets.
