Gucci Owner, Kering SA, Invests $963 Million in Manhattan's Fifth Avenue Property
Gucci's Owner Invests Big on Fifth Avenue, What it Means for Luxury Brands.
Kering SA, the fashion powerhouse behind brands like Gucci and Balenciaga, has acquired a building on Manhattan’s Fifth Avenue for a whopping $963 million. The prime property, located at 715-717 Fifth Ave., spans 115,000 square feet and boasts multiple levels of retail space, strategically positioned across from Trump Tower at the corner of 56th Street.
In a statement, Kering expressed that this investment aligns with its selective real estate strategy, focusing on securing key and highly desirable locations for its luxury brands. The move follows a trend of global luxury companies opting to purchase buildings in New York City instead of leasing space, showcasing a strategic shift in their approach to real estate.
The recent acquisition by Kering mirrors Prada's $835 million expansion deal on Fifth Avenue, making significant real estate moves in Manhattan. Both properties were reportedly sold by Jeff Sutton, according to insider sources, emphasizing a growing trend of luxury brands directly investing in prime locations.
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While this move by Kering signifies a continuation of its real estate strategy, Manhattan's retail properties, including Fifth Avenue, have demonstrated resilience compared to other building types amid changing market dynamics. The city's real estate landscape has witnessed notable transactions, with brands like Prada and automotive giant Hyundai Motor Group making substantial investments in the past year.
Kering has strategically acquired prime retail properties globally, including prominent locations in Paris and Tokyo. This latest venture solidifies the company's commitment to securing key spaces for its renowned fashion houses, aligning with its vision for continued growth and brand prominence.
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