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PARIS, Dec 16 (Reuters) – Kering (PRTP.PA)the owner of luxury brand Gucci, said on Tuesday it had agreed to sell a 60% stake in a prime New York property to private equity firm Ardian, raising $690 million in cash.
The deal, first reported by Reuters in June, comes as Kering seeks to cut debt and protect its credit rating.
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Kering will contribute the property at 715-717 Fifth Avenue to a newly created joint venture with Ardian, while retaining a 40% stake, the group said.
The transaction values the property at $900 million, below the $963 million Kering paid for the building in 2024.
In a similar deal announced in January, Kering sold a majority stake in three of its Paris real estate assets to French firm Ardian, freeing up 837 million euros in proceeds.
“Like the investment agreement already signed in Paris, this transaction allows us to secure another long-term highly prominent retail location for our Houses while enhancing our financial flexibility,” said Kering chief operating officer Jean-Marc Duplaix, commenting on the New York Ardian deal.
With profits from handbags and fashion down from their peak in 2022, Kering is using high-profile disposals to rein in debt. In October, it agreed to sell its beauty unit to cosmetics giant L’Oreal for $4.7 billion.
Reporting by Dominique Vidalon;
Editing by Sudip Kar-Gupta and Louise Heavens
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