Kering snaps up prime property on Fifth Avenue for nearly $1 billion

French luxury powerhouse Kering Group has acquired a prime retail site at 715-717 Fifth Avenue, on the Southeast corner of 56th Street, for US$963 million from Jeff Sutton’s Wharton Properties. 

The building, currently home to Giorgio and Dolce & Gabbana, spans 10,700sqm and comprises multi-level luxury retail spaces. The new Fifth Avenue property will join Kering’s portfolio of prime properties, including Montaigne and rue de Castiglione in Paris, Tokyo’s Omotesando, and the Hôtel de Nocé housing Boucheron’s Paris flagship.

“This investment represents a further step in Kering’s selective real estate strategy, aimed at securing key highly desirable locations for its Houses,” the company said in a statement. 

The deal follows Prada’s $425 million acquisition of the 724 Fifth Avenue building from Wharton Properties last month.  

Kering acquired the luxury fragrance label Creed and fashion house Valentino last year. The group also named Sean McGirr as Alexander McQueen’s creative director. 

The Gucci parent company reported a 13 per cent year-on-year drop in revenue to $4.8 billion for the third quarter of last year. 

Further reading: Kering snaps up Valentino amid modest H1 results.

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