French luxury powerhouse Kering is reportedly in advanced talks to sell a stake in one of its most valuable real estate assets in Milan, valued at over $1.4 billion, according to Italian newspaper Corriere della Sera. The potential buyer? None other than the Qatar Investment Authority (QIA)—one of the world’s most influential sovereign wealth funds.
The property in question is located on Via Monte Napoleone, one of Milan’s most exclusive shopping streets, often referred to as the “Rodeo Drive” of Italy. Kering, the parent company behind luxury labels like Gucci, Balenciaga, and Saint Laurent, purchased the building less than a year ago for 1.3 billion euros ($1.4 billion). Now, it seems the company is ready to partially cash out as part of a strategic move to ease financial pressures.
So far, Kering has declined to comment on the deal, and attempts to reach QIA for confirmation were unsuccessful. However, the report suggests that discussions are serious and ongoing.
This potential transaction comes at a critical time for Kering. The group is under growing financial strain due to a sharp decline in sales at Gucci, its flagship brand. Once a revenue juggernaut, Gucci has recently struggled to maintain its dominant position in the luxury fashion market. As a result, Kering is shifting gears—opting to monetize high-value assets and refocus its balance sheet.
Earlier this year, the company completed a similar move in Paris. It formed a joint venture with investment firm Ardian, transferring ownership of three Parisian properties while retaining a 40% stake. That deal brought in 837 million euros, which helped reduce debt and reinforce liquidity.
The Milan sale appears to be part of the same strategy. In 2024, Kering’s net debt skyrocketed to over 10.5 billion euros, fueled by a spree of high-cost acquisitions. Selling part of its Milan real estate could free up substantial capital and help the brand reposition itself amid changing consumer trends and market dynamics.
Meanwhile, Kering’s shares jumped early Thursday, partly buoyed by easing concerns around U.S. tariff policies, which had been weighing heavily on European luxury stocks.
This latest development signals a shift in how luxury companies manage their portfolios. With real estate values soaring in global fashion capitals like Milan and Paris, asset monetization has become a viable strategy for financial recovery and investment redirection.
If the Qatar deal goes through, it would not only reaffirm QIA’s interest in premium European assets but also mark another step in Kering’s attempt to realign its financial trajectory.
