In December 2024, Kering, the French luxury conglomerate behind brands like Gucci and Saint Laurent, completed the acquisition of a landmark 18th-century building at Via Montenapoleone 8 in Milan for €1.3 billion. This transaction, Europe’s largest single-asset property deal since 2022, represents a strategic move to secure prime real estate in what has become the world’s most expensive retail destination, surpassing New York’s Fifth Avenue with rents reaching €20,000 per square meter.

The five-floor, 5,000-square-meter property currently hosts flagship stores for Saint Laurent, Prada, and LVMH’s Café Cova. For Kering, this acquisition follows other significant real estate investments, including a $963 million purchase on Fifth Avenue in New York, highlighting the company’s strategy of owning rather than leasing premium retail locations.

Via Montenapoleone’s value has surged, with rents increasing by nearly one-third over the past two years, driven by limited supply and high demand. The acquisition offers Kering several strategic advantages: enhanced brand prestige, long-term stability against fluctuating rental markets, control over creating immersive retail experiences, asset appreciation potential, and opportunities to implement sustainability initiatives.

This investment exemplifies how luxury brands increasingly view premier real estate not merely as an operational cost but as a vital component of brand identity and competitive strategy in the global luxury market.