French luxury goods company, Kering has sold its ‘The Mall Luxury Outlets’ business in Italy to a US real estate company, Simon Property Group.
Owner of Gucci and other luxury brands, Kering will gain approximately $365 million from the sale. The global economic slowdown in luxury spending has impacted Kering more than its competitors with the company registering declines in both sales and profits.
Earlier this month, Kering also sold a majority stake in three properties in Paris to Ardian, a French private equity firm. That deal generated net proceeds of around €837 million ($861 million).
‘The Mall’ operates two luxury outlet centers in Italy, one near Florence and the other in Sanremo. Kering described the outlet business as ‘non-core’ as it aims to reduce its involvement in outlet retail. However, Kering's brands will continue to have a presence in both Italian locations after the sale.
