Gide advises Kering on finalization of joint venture agreement with Ardian regarding prime real estate asset in New York

Gide advised Kering on the finalization of a joint venture agreement with Ardian concerning a prime real estate asset located in New York, at 715–717 Fifth Avenue.

Kering and Ardian announced the completion, with immediate effect, of a co-investment agreement relating to the building owned by Kering at 715–717 Fifth Avenue in New York. This agreement follows on from the partnership entered into earlier this year. Kering is contributing this asset to a newly formed joint venture with Ardian, which will hold a 60% interest, while Kering will retain a 40% stake.

The transaction amounts to US$900 million (€766 million), from which Kering will receive net proceeds of US$690 million (€587 million).

This iconic building, located on one of the world’s most prestigious shopping avenues, represents a highly strategic prime location for the luxury sector.

This transaction forms part of Kering’s selective real estate strategy, aimed at securing exceptional long-term locations for its Maisons while optimizing the value of its asset portfolio.

The Gide team was composed of partners Jean-François Levraud and Jean-Gabriel Flandrois, counsels Ghizlen Sari-Ali and Elise Bernard, and associates Marion Toualit, Candice Veroux, Thomas Khelifi, Manon Garoui and Côme Lefebure on the real estate and M&A aspects; partner Laurent Modave, of counsel Julien Aillet, Léa Grandfond and associate Alix Pricot on tax aspects; and partner Laetitia Lemercier on financing aspects.

The New York teams of Ropes & Gray LLP and Sheppard Mullin Richter & Hampton LLP also advised on U.S. law matters, alongside the Gide team.