The French luxury goods group Kering and the investment company Ardian announced on Tuesday that they had entered into a co-investment agreement. The partnership provides for the creation of a joint venture for a property on Fifth Avenue in New York.
The building is located at 715-717 Fifth Avenue and has approximately 10,700 square feet of retail space. As part of the transaction that has now been announced, the value of the property is estimated at 900 million US dollars (833 million euros). Kering will receive a net amount of $690 million (€639 million) as a result of the agreement.
Kering is pushing ahead with its real estate strategy
In the new joint venture into which Kering is contributing the property, Ardian will take a majority stake of 60 percent, while Kering will retain 40 percent. This is the second partnership between the two companies in 2025, following a similar agreement in Paris.
For Kering, this transaction is part of the active management strategy for the real estate portfolio. The aim is to monetize assets and at the same time secure the strategic locations for the group’s brands in the long term.
Jean-Marc Duplaix, Kering’s Chief Operating Officer (COO), explained the new partnership: “We continue to implement our strategy to manage our real estate portfolio, expanding our fruitful collaboration with Ardian. This agreement once again allows us to secure a prime retail location for our properties in the long term, while strengthening our financial flexibility.”
Ardian establishes presence in the United States
According to a statement, this acquisition represents a significant strategic advance in the American market for Ardian. The fund is making its first real estate investment in the USA.
Stéphanie Bensimon, Executive Committee Member and Head of Real Estate at Ardian, expressed her delight at continuing the partnership with Kering: “715-717 Fifth Avenue offers us exceptional visibility and long-term value. This is Ardian’s first real estate investment in the United States and marks our strategic expansion into this particularly attractive market.”
Ardian is a global investment company with French roots. The company was founded in 1996 and was initially known as AXA Private Equity. It became independent in 2013.
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