Kering, the French luxury conglomerate that owns Gucci, announced a transaction on Wednesday selling an 80% interest in its Milan property on Via Monte Napoleone to Al-Mirqab Group of Qatar for 1.16 billion euros ($1.35 billion).
Under the terms disclosed, Kering will continue to hold a 20% equity stake through a joint venture with Al-Mirqab. The deal includes an immediate cash consideration of 729 million euros and a deferred payment of 432 million euros that is due in five years.
The figures disclosed by the company point to a nominal valuation of 1.45 billion euros for the Milan building. Kering originally acquired the property in 2024 for 1.3 billion euros.
Kering said the disposal is part of a broader programme of transactions intended to lower its debt burden and to defend its credit rating in the face of weak sales at its fashion brands. The company will therefore convert a direct majority ownership of a prime retail asset into liquidity while maintaining a minority stake that preserves exposure to future property value and revenue.
Key elements of the structure - the split between an upfront payment and a deferred balance - mean Kering receives most proceeds immediately while leaving a material portion payable after a multi-year interval. The company will also remain economically involved in the Milan asset through the retained 20% interest.
The move is presented by Kering as one component in its efforts to strengthen the group’s financial position amid a challenging sales environment across parts of its fashion portfolio. The sale concentrates ownership with Al-Mirqab while preserving Kering’s minority participation and potential upside through the joint venture arrangement.
Summary
Kering has sold an 80% stake in its Via Monte Napoleone building in Milan to Al-Mirqab Group for 1.16 billion euros, retaining 20% via a joint venture. The company will receive 729 million euros immediately and 432 million euros in five years. The disclosed terms imply a 1.45 billion euro valuation for an asset Kering bought in 2024 for 1.3 billion euros. The transaction is part of efforts to reduce debt and protect the company’s credit rating amid weak sales.