Kering Sells Milan Building to Qatar Fund in Latest Portfolio Reshuffle

By Joshua Kirby

Kering is selling off most of its stake in a prestigious Milan building just two years after acquiring it for a billion and a half dollars.

The French luxury-fashion group, owner of Gucci and other high-end brands, said Wednesday that it will sell the asset to a newly formed joint company held 80% by Qatari investment fund Al Mirqab. Kering will retain a stake of 20% in the company. The group will get immediate proceeds of 729 million euros ($842.3 million) on closing, with another 432 million euros to be paid in five years, it said.

The deal comes barely two years after Kering agreed to acquire the historic building, situated on a corner of the glamorous Quadrilatero della Moda in a swanky part of Italy's business and fashion capital. The group in 2024 paid around 1.3 billion euros to a subsidiary of Blackstone for the building. It said at the time that the investment was part of a strategy aimed at securing top locations for its fashion houses.

The decision to sell the building comes as Kering, under the new leadership of former Renault boss Luca de Meo, looks to move on from a difficult period for the group, which has seen Gucci struggle with falling sales. Last year, the company sold stakes in real-estate assets in Paris and New York, and in October it reached a deal to sell its beauty business to French giant L'Oreal for some $4.7 billion.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

April 01, 2026 12:33 ET (16:33 GMT)