Blackstone sells Milan asset to Kering in record €1.3bn deal

In a record single asset deal for Italy and the largest single property trasaction in Europe since March 2022, a subsidiary of Blackstone Property Partners Europe has sold a trophy 18th-century building in central Milan to luxury goods retail group Kering for about €1.3 billion.

The asset, at via Montenapoleone 8, is located on the most prominent corner of the Quadrilatero della Moda, an upmarket shopping district to the south of Porta Nuova. The five-storey building has a gross area of 11,800 sq m including retail space of more than 5,000 sq m and is the largest building in in via Montenapoleone.

Tenants include the historic Milanese café Cova and fashion brands Prada and Saint Laurent.

Kering, which stated that it is focused on proactively managing its property portfolio with the objective of retaining a stake in prime assets alongside co-investors, said the acquisition is part of a selective real estate strategy which aims to secure highly desirable key locations for its brands.

Those brands include: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin and Ginori 1735, as well as Kering Eyewear and Kering Beauté. In 2023 Kering’s revenue was €19.6 billion.