PARIS, Dec 16 (Reuters) – Gucci owner Kering and private equity firm Ardian said on Tuesday they had completed a joint venture agreement for a New York property deal valued at $900 million.
Under the deal concluded earlier this year, Kering is contributing the property at 715-717 Fifth Avenue in New York to a newly created joint venture with Ardian, the companies said in a joint statement.
Ardian will hold a 60% stake in this, with Kering retaining 40% and receiving $690 million in net proceeds.
The transaction is part of Kering’s broader strategy to secure control of high-profile retail locations while also raising cash.
In January, Kering said it had transferred three of its Paris real estate assets to a new joint venture with Ardian, freeing up 837 million euros in proceeds.
“Like the investment agreement already signed in Paris, this transaction allows us to secure another long term highly prominent retail location for our Houses while enhancing our financial flexibility,” said Kering chief operating officer Jean-Marc Duplaix, commenting on the New York Ardian deal.
(Reporting by Dominique Vidalon;Editing by Sudip Kar-Gupta)
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