Luxury group sells majority stake in New York flagship property as debt reduction accelerates under new leadership
Kering has sold a 60 percent stake in its Fifth Avenue property at 715–717 Fifth Avenue to private equity firm Ardian, continuing a broader effort to rebalance its balance sheet through selective real estate monetization. The transaction values the asset at $900 million and delivers net proceeds of $690 million to the French luxury group, which will retain a 40 percent interest in the property.
The multilevel retail building spans approximately 115,000 square feet and sits among New York’s most prominent luxury addresses. Kering acquired the property in early 2024, positioning it as a long-term strategic location for its houses while maintaining flexibility over ownership structure. Under the joint venture agreement, Ardian assumes majority ownership, mirroring a structure the two groups established earlier this year in Paris.
In January, Kering transferred three high-profile Parisian properties into a joint venture with Ardian valued at €837 million, with Ardian again taking a 60 percent stake. The New York deal extends that partnership beyond Europe and marks Ardian’s first real estate investment in the United States. For Kering, the transaction reinforces a pattern of unlocking capital from prime assets while preserving operational control and long-term occupancy.
The move comes amid sustained pressure on Kering to reduce leverage following an aggressive period of acquisitions and capital expenditures. Analysts estimate the group’s net debt rose from roughly €200 million in 2021 to about €10.5 billion by the end of 2024, driven by purchases including Creed, Maui Jim, and significant real estate investments. Net debt stood at €9.5 billion at the end of June.
Since assuming the role of chief executive officer in mid-September, Luca de Meo has moved quickly to address the group’s financial position. Recent steps include deferring option timelines related to Kering’s stake in Valentino, accelerating plans for cost reductions and store closures, and pursuing asset disposals and real estate refinancing. In October, Kering also announced the sale of its beauty division to L’Oréal for €4 billion in cash, alongside long-term licensing agreements and a joint venture in wellness.
Taken together, the Fifth Avenue transaction underscores a strategic pivot toward liquidity and balance sheet discipline, with real estate playing a central role in Kering’s effort to stabilize and reposition the group amid a challenging luxury market.