Kering's Milan Property Sale: A Royal Transaction in the Making

Kering, the French luxury giant that owns Gucci, is reportedly in discussions to sell a building on Milan's prestigious Via Montenapoleone. The potential buyer is a member of the Qatari royal family, according to Italian newspaper Corriere della Sera. This prospective sale could significantly assist Kering in curbing its mounting debt, which rose to more than 10 billion euros after a series of costly acquisitions.

In April last year, Kering acquired the 18th-century property, further inflating its financial obligations. Now, the company is considering selling a majority stake in the firm controlling the building, with valuations comparable to its previous purchase from Blackstone at 1.3 billion euros.

The interested party is said to be a real estate vehicle owned by Hamad bin Jassim bin Jaber Al-Thani, a billionaire and former Prime Minister of Qatar. Kering has not commented on the reported transaction, and Al-Thani was unavailable for comment. April reports had initially denied involvement by the Qatar Investment Authority. Kering's move aligns with its strategic shift under new leadership to manage debt and revive its top brand, Gucci.

(With inputs from agencies.)