Kering has sold a majority stake in its Fifth Avenue property to private equity firm Ardian. The transaction, announced Tuesday, involves Ardian acquiring 60 percent of the 115,000-square-foot building at 715-717 Fifth Avenue. The deal values the property at $900 million and provides Kering with $690 million in proceeds. Eastdil Secured served as an advisor to Ardian during the sale.
Kering will retain a 40 percent interest in the Plaza District asset, which it originally purchased early last year from Jeff Sutton and SL Green for $963 million. This acquisition was part of Kering’s broader strategy to own high-profile real estate in major global markets. At that time, other luxury retailers were also purchasing their own Manhattan properties; for example, Prada acquired nearby buildings for $835 million from Wharton Properties’ Jeff Sutton.
Recently, Kering has been selling assets to address its financial position after its debt reached about $12 billion by the end of last year. The company is working to raise at least 2 billion Euros through global real estate sales over two years and has considered selling properties in Milan and Tokyo as well.
Earlier this year, Ardian and Kering formed a similar partnership involving three properties in Paris. This Fifth Avenue deal marks Ardian’s first real estate investment in the United States.
“We are truly committed to acquiring and managing ultra prime assets in the most sought-after locations,” said Omar Fjer, an executive at Ardian.
In related activity within Manhattan’s Plaza District, Louis Vuitton recently filed plans with city officials for a new 25-story building at 1 East 57th Street near Fifth Avenue that would total 148,000 square feet.
