PARIS (Reuters) -Gucci owner Kering has transferred three of its Paris real estate assets to a new joint venture with French private equity firm Ardian, freeing up 837 million euros ($860.27 million) in proceeds, the company announced on Wednesday.
The portfolio of the new entity, in which Kering will keep a 40% stake, includes a building on place Vendome, famous for its jewellery boutiques, and two others on avenue Montaigne, one of Paris’s main high-end shopping streets.
The transaction is part of Kering’s broader real estate strategy, aimed at securing control of high-profile retail locations while also raising cash.
The company – which also owns fashion labels Saint Laurent, Balenciaga and Bottega Veneta – issued a hefty profit warning in October. It is due to report full-year results on Feb. 11.
($1 = 0.9730 euros)
(Reporting by Tassilo Hummel, Editing by GV De Clercq)
