ROME (Reuters) -Gucci-owner Kering is in talks with a member of the Qatari royal family for the sale of a building in Milan’s top shopping avenue, Italian daily Corriere della Sera reported on Saturday.
The deal could help the French luxury group cut its debt, which ballooned to more than 10 billion euros ($11.58 billion) in 2024, following a series of expensive acquisitions.
Among them was the 18th century property in Via Montenapoleone, which the French group bought from Blackstone for 1.3 billion euros in April last year.
Corriere said Kering was looking at selling a majority stake in the company through which it owns the building, based on a “similar valuation”.
It added that the buyer would be a vehicle linked to former Qatari Prime Minister and real estate billionaire Hamad bin Jassim bin Jaber Al-Thani.
Kering declined to comment on the report. It was not immediately possible to contact Al-Thani for a comment.
In April, when Corriere first reported about a possible Qatari-Kering deal for the Via Montenapoleone property, the Qatar Investment Authority denied it had any interest.
Kering, which appointed former Renault CEO Luca de Meo to lead the group from September, is under pressure to trim debt and revive declining sales, particularly at its top brand Gucci.
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(Reporting by Alvise Armellini in Rome, additional reporting by Layli Fouroudi in Paris, Editing by Louise Heavens)
