The luxury group is selling this prestigious asset to a joint venture that will be 80% owned by the Qatari group Al Mirqab and 20% by Kering. The deal provides the company with financial flexibility while securing the location. This approach was already used last year in Paris and New York for other buildings.
Kering continues its streamlining efforts.
After finalizing the sale of its Beauty division to the L’Oréal group for €4 billion the day before, Kering announced on April 1, after the markets closed, the sale, “effective immediately,” of its Milan building at 8 Via Monte Napoleone to the Qatari group Al Mirqab.
While rumors that the sovereign wealth fund Qia-Qatar Investment Authority was set to acquire this prestigious property have been dispelled, Qatar remains a key partner of Kering. Al Mirqab Group is in fact owned by the Qatari royal family and Sheikh Tamim bin Hamad Al Thani. In 2023, Kering had already acquired a 30% stake in the Valentino fashion house from the Qatari investment fund Mayhoola.
Kering, still holding a 20% stake
Kering is not completely divesting itself of this asset. It will be transferred “to a newly formed joint-stock company, 80% owned by Al Mirqab Group and 20% by Kering,” the latter explained in a press release. “Kering’s stake will be accounted for using the equity method effective immediately.”
The transaction has already generated 729 million euros for the luxury group led by Luca de Meo upon its completion. An additional 432 million euros will be paid to the group in five years.
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Read more > How Kering is paying off its debt by offloading its real estate assets
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