Kering finalises agreement for iconic Milan property

The global luxury group Kering has announced the immediate execution of a transaction agreement with Al-Mirqab Group concerning its landmark property at Via Monte Napoleone 8 in Milan.

Via Monte Napoleone 8, Milan

Occupying the most prestigious corner of Milan’s Quadrilatero della Moda, the asset is a premier flagship location. This 18th-century building stands as one of the largest and most significant properties in the heart of the city’s luxury district.

The deal involves the transfer of the asset into a newly formed joint-stock company in which Al-Mirqab Group holds an 80% stake, while Kering retains 20%.

Kering will account for its remaining interest using the equity method, effective immediately.

Kering received €729 mln at closing, while an additional €432 mln is scheduled to be paid to the Group in five years.

This partnership follows similar real estate manoeuvres conducted by Kering last year in Paris and New York. The move is a core part of the Group’s selective real estate strategy, designed to secure long-term access to highly desirable, "iconic" locations for its luxury Houses and enhance overall financial flexibility through capital recycling.