Gucci's owner Kering has purchased a retail block in Milan for €1.3 billion, marking Europe's largest property sale since 2022.
Via Monte Napoleone 8 Source: Kryalos
Via Monte Napoleone 8, which was sold by Blackstone, hosts sites for designer brands such as Prada and Saint Laurent.
Kering's purchase represents a wider trend of luxury companies buying up sites across the globe, particularly in key cities and where flagship stores are located.
Justifying the buy, the Gucci owner said it was part of a "selective real estate strategy, aimed at securing key highly desirable locations for its houses”.
Last month, Kering issued a profit warning after it experienced a slowdown in sales, sending shares in the sector lower.
Sales in the first quarter are expected to fall by 10% year-on-year, with revenues from Gucci, which accounts for two-thirds of operating income, set to drop by 20%.
A steeper sales drop at Gucci was most notable in the Asia-Pacific region, said Kering.