Kering sells majority stake in New York property in $900 million deal 

PARIS, ‌Dec 16 (Reuters) - Kering, the owner of luxury brand Gucci, ‍said ‌on Tuesday it had agreed to sell a 60% ⁠stake in a prime ‌New York property to private equity firm Ardian, raising $690 million in cash.

The deal, first reported by Reuters in June, comes as ⁠Kering seeks to cut debt and protect its credit rating.

Kering will ​contribute the property at 715-717 Fifth Avenue ‌to a newly created ⁠joint venture with Ardian, while retaining a 40% stake, the group said.

The transaction values the property at $900 million, ​below the $963 million Kering paid for the building in 2024.

In a similar deal announced in January, Kering sold a majority stake in three of its Paris real ​estate ‍assets to French ​firm Ardian, freeing up 837 million euros in proceeds.

"Like the investment agreement already signed in Paris, this transaction allows us to secure another long-term highly prominent retail location for our Houses while enhancing our financial flexibility," said ⁠Kering chief operating officer Jean-Marc Duplaix, commenting on the New York Ardian deal.

With profits ​from handbags and fashion down from their peak in 2022, Kering is using high-profile disposals to rein in debt. In October, it agreed to ‌sell its beauty unit to cosmetics giant L'Oreal for $4.7 billion. 

(Reporting by Dominique Vidalon;Editing by Sudip Kar-Gupta and Louise Heavens)