Kering and Ardian Strengthen Their Real Estate Alliance in New York

Acquired by Kering in January 2024 for 963 million dollars, the building houses nearly 10,700 square metres of luxury retail space on several floors in the heart of Manhattan. As part of a partnership initiated in January 2025, Kering is contributing this asset to a joint venture owned 60% by Ardian and 40% by Kering.

‘This agreement allows us to secure a prime retail location for our brands in the long term, while strengthening our financial flexibility,’ explains Jean-Marc Duplaix, Chief Operating Officer of Kering, in today's press release.
Beyond the financial aspect, this transaction illustrates a structural shift within the luxury industry. Groups are no longer content to simply own their iconic buildings: they are now seeking to partially monetise them while retaining their strategic use and control over their image.

Stéphanie Bensimon, member of the Executive Committee and Head of Real Estate at Ardian, said in the press release: ‘We are delighted to continue our partnership with Kering. 715-717 Fifth Avenue offers us exceptional visibility and long-term value.’

This practice is not unique. LVMH, for example, has already signed agreements with property partners for certain international flagship stores, while ultra-luxury hotels — such as Four Seasons and Bulgari Hotels — have long relied on the separation between property ownership and brand operation.

In Paris and New York alike, iconic locations are thus emerging as a new class of sought-after assets, at the crossroads of finance and luxury.
After several years marked by operational and stock market turbulence, the Kering group is seeking to restore its financial health without undermining its strategic foundation. In this sense, this operation can be seen as a rebalancing of the balance sheet, freeing up resources while preserving key positions.

Rather than a sign of weakness, it could mark the emergence of a more agile luxury sector, characterised by more fluid management of investments and divestments.