Kering SA (OTC:PPRUF), the parent company of the luxury brand Gucci and Balenciaga, has purchased a tower on Manhattan's Fifth Avenue for $963 million.
The property, totaling approximately 115,000 sq. ft, or 10,700 sq. m., is located at 715-717 Fifth Avenue, on the Southeast corner of 56th Street.
This investment represents an additional capacity in Kering's selective real estate plan to secure key highly desirable locations for its Houses.
In addition to recently acquired prime properties on Avenue Montaigne and Rue de Castiglione in Paris, the Group's portfolio includes landmark assets in Tokyo's Omotesando and the Hôtel de Nocé housing Boucheron's Paris flagship.
In line with its longstanding financial strategy, Kering said it intends to execute a disciplined and flexible approach with regard to the management of its real estate portfolio.
The purchase represents one of the newest enormous New York City real estate deals by an international luxury firm, per a news report by Bloomberg.
Kering and other entities opt to acquire buildings in New York rather than leasing space, following a trend highlighted by Prada S.p.A. (OTC:PRDSY) recent $835 million expansion on Fifth Avenue, as reported by Bloomberg last month.
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