Kering, the owner of Gucci, is in exclusive talks with private equity firm Ardian to sell a majority stake in a prime Fifth Avenue property, as the French group tries to cut costs amid a slowdown in luxury demand.
The New York building — bought just over a year ago — could become the second deal of this type that the Paris-listed luxury group has struck with Ardian, according to people familiar with the matter, after it agreed a similar deal to sell stakes in prime Paris retail locations at the start of the year.
Kering has spent billions in recent years securing property in the most desirable retail spots in major capitals as part of a race between rival luxury groups to secure glitzy locations for their brands. The group, controlled by the Pinault family, bought 715-717 Fifth Avenue, near Rockefeller Center and St Patrick’s Cathedral, last January for just under $1bn.