Kering sells its family jewels: secret negotiations with Qatar for the historic building on Via Monte Napoleone

Kering is seeking to sell its control of the building at Via Monte Napoleone 8, one of Milan's most prestigious properties, in the heart of the fashion district. Negotiating on the other side of the table is the Qatari royal family, specifically a vehicle linked to Hamad bin Jassim Al Thani, uncle of the current emir.

As reported by Corriere della Sera, Kering purchased the building from Blackstone for €1.3 billion, the largest single-property investment in Italy, but now appears ready to sell a majority stake at a price close to the purchase price. The French group spent €14 billion in just a few years to acquire luxury brands and properties, but this has pushed its debt to €10.5 billion, just as the luxury sector began to slow.

Gucci, Kering's flagship brand, is struggling significantly: in the first six months of the year, revenue fell 26%. The group's overall turnover fell 16%, with profits halved.

For this reason, Kering has begun selling assets: outlets in Italy, buildings in Paris, Tokyo, and New York, grossing around €800 million so far. The sale of Via Monte Napoleone could be the next. The Milanese building is home to major stores such as Cova, Prada, Yves Saint Laurent, and Le Coultre, but Kering clearly needs liquidity more than prestigious properties.

Qatar is no stranger to real estate investments in Italy: it has already invested over €5 billion, including the Unicredit Tower in Milan. The agreement with the Qatari family could be one of the first acts of Kering's new CEO, Luca de Meo, who will take over in September.