K
ering is liquidating real‑estate holdings to boost liquidity and trim debt, announcing a joint venture with Ardian for its 715‑717 Fifth Avenue property in New York. Ardian will own 60 % of the venture, with Kering keeping the remaining 40 %. The deal is worth $900 million, netting Kering $690 million. The site spans roughly 115,000 sq ft of upscale retail space. Earlier, in January, Kering transferred three high‑profile Paris properties to a joint venture with Ardian for €837 million, again giving Ardian a 60 % stake and leaving Kering with 40 %.

    Jean‑Marc Duplaix, Kering’s COO, said the partnership with Ardian continues to support the company’s real‑estate strategy, securing a prime long‑term retail location while improving financial flexibility. Analyst projections show Kering’s net debt surged from €200 million in 2021 to about €10.5 billion by the end of 2024, driven by acquisitions of Creed, Maui Jim and significant real‑estate purchases. The Fifth Avenue asset was bought early in 2024.

    Since taking the helm on September 15, CEO Luca de Meo has pursued aggressive debt‑reduction measures, cutting the net debt to €9.5 billion by June’s end. In September, Mayhoola’s put options on Kering’s remaining 70 % stake in Valentino, exercisable in 2026 and 2027, were postponed to 2028 and 2029, with the corresponding call option also deferred to 2029.

    Following a 10 % decline in Q3 revenues reported in October, de Meo committed to tightening costs, closing stores, refinancing real‑estate and divesting non‑core assets. That month, Kering announced the sale of its beauty division to L’Oréal for €4 billion in cash, granting L’Oréal long‑term fragrance and beauty licenses for key brands and forming a joint venture in wellness. The Tuesday transaction marks Ardian’s inaugural U.S. real‑estate investment.