Kering and Ardian finalise New York property deal

Gucci owner Kering and private equity firm Ardian said on Tuesday they had completed a joint venture agreement for a New York property deal valued at $900 million.

Under the deal ⁠concluded earlier this year, Kering is contributing the property at 715-717 ⁠Fifth Avenue in New York to a newly created joint venture with Ardian, the companies said ‍in a joint ‌statement. Ardian will hold a 60% stake in ⁠this, with ‌Kering retaining 40% and receiving $690 million in ‌net proceeds.

The transaction is part of Kering’s broader strategy to secure control of high-profile retail locations while also raising cash. In January, ‍Kering said it had transferred three of its Paris real estate assets to a new joint venture ‌with ⁠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.