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Kering Forms $900 Million Fifth Avenue JV With Ardian, Raising $690 Million

The deal boosts Kering’s cash to cut debt without giving up control of its Fifth Avenue site.

Overview

  • Kering contributed its 115,000-square-foot retail property at 715–717 Fifth Avenue to a new joint venture in which Ardian holds 60% and Kering retains 40%.
  • The transaction values the asset at $900 million and delivers $690 million in net proceeds to Kering.
  • Kering will account for its 40% stake under the equity method as of the agreement’s effective date.
  • Ardian described the deal as its first real estate investment in the United States as it expands its real-assets strategy.
  • The structure mirrors a January partnership between the firms for three Paris properties, and the New York valuation sits below the roughly $963 million Kering paid for the site in early 2024.