The French luxury group plans to house its real estate assets in a new ad hoc structure to reduce the debt of its historic business and restore investment capacity to its luxury Houses.
Kering is looking to start 2025 with more room to maneuver.
The French luxury goods group is said to be on the verge of creating a new real estate structure to reduce its high level of debt.
Confirming a report published at the end of 2024 in the Italian daily Il Sole24 Ore, a Kering spokesman explained that Kering was “considering refinancing part of its prime real estate assets by welcoming a third-party investor in a dedicated vehicle”. He added that the group “is not considering other options such as a demerger or an IPO.”
Il Sole 24 did, however, explain that Kering could float this real estate company, whose creation is expected to be formalized in mid-2025.
Milan, Paris, New York
The new structure will housea dozen buildings in Milan, Paris and New York. These are all fashion and luxury capitals where Kering, and other major luxury players, have recently stepped up their real estate purchases. For these luxury giants, real estate purchases are a guarantee of their long-term future, at a time when their core businesses are facing headwinds.
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