Kering makes record shopping in Italy: 1.3 billion for a building in Monte Napoleone

The latest numbers from Kering, the international luxury group whose brands include Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, were not exciting precisely because of the moment of transition of the Florentine fashion house. But the French giant that is headed by Francois Henri Pinault he doesn’t miss what he considers to be a real estate opportunity and buys the company that owns “the iconic and historic property in via Monte Napoleone 8, in Milan”.

Value of the operation: 1.3 billion euros, a record for a single real estate asset in Italy.

The building was in the portfolio of Blackstone Property Partners Europe and James Seppala, Head of Real Estate Europe at Blackstone commented on the transaction: “This transaction represents an excellent result for our investors and demonstrates the extraordinary demand for high quality properties in the markets more solid on the part of investors”. The building in Via Montenapoleone ended up in the hands of Blackstone in the last weeks of 2021, when the fund acquired Reale Compagnia Italiana with its portfolio of 14 prestigious properties (13 in Milan and 1 in Turin Behind Reale there were many prominent families of Milanese high society: the president and point of reference was Achille Balossi Restelli and were among the main partners Gian Giacomo Medici of Marignano, Stefano Premoli Trovatifounder of the law firm Tfp&Associati and again Luca Padulli di Vighignolo. And then other noble Lombard families like the Brambilla from Civesio, Barbiano from Belgioioso, Cavagna from Gualdana, De Capitani D’Arzago, Melzi d’Eril, Borromeo, Sioli Legnani and Davico from Quittengo.

Then the palace of Montenapoleone was defined the “largest and most iconic” of the Reale lot, from Mediobanca which he had followed the purchase and financing of Blackstone, a “trophy asset leased to several leading luxury groups (LVMH, Kering, Prada among others)”. And again, one of the “best luxury fashion corners in the world”, with “the famous Cova coffee acquired by LVMH for over 30 million after a battle with Prada”.

The entire portfolio had changed hands for 1.2 billion and already at that time it constituted the largest acquisition of real estate companies in Italy. In fact, within a couple of years the fund repaid the entire portfolio with the sale of just one asset, the best. On the other hand, via Monte Napoleone continues to be a reference for luxury: according to the report by the real estate company Cushman&Wakefield dedicated to luxury streets at the end of November, it is in second place in the world after Fifth Avenue in New York and first in Europe , if we take into consideration the parameter of shop rents. A trend that continued in more recent months: the same company, in focus on the Italian market at the end of Januarysaid that the main luxury streets (in addition to Milan also Via Condotti, in Rome) “have seen rents increase further”.

The investment – returning to Kering’s note – is part of Kering’s selective real estate strategy, which intends to secure highly prestigious and sought-after positions for its Maisons.

Located in one of the most important intersections of the Fashion Quadrilatero, the eighteenth-century building – adds the note – is spread over five floors, for a total of 11,800 square meters of gross surface area. The property includes more than 5,000 square meters of commercial space, one of the largest on Via Monte Napoleone.

Kering continues to favor proactive management of its real estate portfolio, with the short-medium term objective of maintaining a stake within its main properties, alongside co-investors present through specific investment vehicles.