The Group Continues To Offload Real Estate Assets As Part Of A Broader Strategy To Reduce Debt
Kering has agreed to sell a majority stake in its landmark property on Via Monte Napoleone in Milan, as the French luxury group accelerates efforts to strengthen its balance sheet and reduce debt.
The company has entered a partnership with Qatar-based Al-Mirqab Group, creating a newly incorporated joint venture that will hold the asset. Under the terms of the agreement, Al-Mirqab will control 80 percent of the entity, with Kering retaining a 20 percent stake.
The transaction values the property at more than €1.1 billion. Kering will receive €729 million at closing, with an additional €432 million to be paid in five years.
Located at 8 Via Monte Napoleone, on the corner with Via Sant’Andrea, the 18th-century building is one of the largest and most prominent retail properties on Milan’s luxury shopping street. Spanning more than 5,000 square meters, it houses a mix of high-end tenants including Prada and the historic Cova café.
The sale comes just a year after Kering acquired the building for approximately €1.3 billion from Blackstone, underscoring a shift in strategy under chief executive officer Luca de Meo. Since taking the helm in September, de Meo has moved quickly to unlock capital tied up in real estate while maintaining operational presence through minority stakes.
The Milan deal follows a series of similar transactions. In December, Kering formed a joint venture with Ardian for its Fifth Avenue property in New York, selling a 60 percent stake in a deal valued at $900 million. Earlier, the group transferred three Paris properties into another Ardian-backed joint venture for €837 million, also retaining a minority position.
Alongside its real estate moves, Kering has taken broader steps to streamline operations and improve financial flexibility. The group recently finalized the sale of its Kering Beauté division to L’Oréal for €4 billion, including the House of Creed and long-term fragrance licensing agreements for its brands. The deal also grants L’Oréal a future exclusive license to develop and distribute Gucci beauty products.
These actions come as Kering works to reduce its debt load, which stood at €8.04 billion at the end of 2025, down from €10.5 billion the previous year. The company also achieved €925 million in cost savings during the year, cutting operating expenses by 9 percent.
Kering has simultaneously adjusted its long-term strategic investments. In September, the group and Qatari investment fund Mayhoola revised the timeline of their partnership around Valentino, delaying options tied to the Italian house’s ownership structure until at least 2028.
Taken together, the Milan transaction reinforces Kering’s ongoing pivot toward a more asset-light model, as it seeks to balance investment in its brand portfolio with improved financial discipline in a challenging luxury market.