Bernard Arnault purchases yet another property on Champs Elysées
Bernard Arnault, renowned for his extravagant luxury purchases, has added yet another trophy asset to his collection - a coveted property on Les Champs Elysées. Bernard Arnault, the multi-billionaire behind LVMH, has purchased 150 avenue Champs Elysées, a building spanning 18,000 square-meters. Insiders suggest the purchase price was near a staggering one billion euros, or €55,000 per square-meter.
Specialists within the Paris real estate market reveal that the deal was inked by LVMH, the world's most colossal luxury conglomerate, just ahead of the weekend. Despite the sluggish French property market, the magnitude of the purchase took industry insiders by surprise. However, it's no secret that Arnault is fond of the Champs Elysées, often referred to as the most beautiful avenue globally by the French public.
Apart from this new acquisition, Arnault's leading brand Louis Vuitton has the largest global flagship property at the location 101. Located a mere 50 meters uphill on the prestigious avenue, another grand store is planned along with the brand's inaugural hotel at 103. It’s worth noting that the acquisition of building 150, which apparently involved a share deal agreed off market, was executed in under three months, according to the well-informed French property broker site CFNews Immo.
LVMH, which refrained from commenting on the transaction, is reportedly believed to have purchased the 150 building from a group of investors, including Mimco Asset Management, a listed Canadian investment fund, which held a 72.6% stake in the property. This group of investors reportedly purchased the property in the spring of 2022 for €750 million, marking a substantial profit in just a year and a half.
The future plans for the new acquisition are yet to be revealed. Still, rumors suggest Arnault might establish a new retail flagship for Dior, which will house the brand's new headquarters. As detailed by Fashion Network, LVMH recently pivoted their plans for 103, which was initially poised to be Dior's global headquarters, but is now designated for Louis Vuitton. The American jewelry brand Tiffany, which has struggled to find its footing since being bought by LVMH in 2021 for $15.8 billion, might possibly be another occupant for 150.
Strategically positioned on the upper right side of the ascending Champs Elysees; the 150 building is just steps away from a Cartier flagship and a stone's throw from the Arc du Triomphe. The property also spans around the corner to two adjoining streets, rue Arsène Houssaye and rue Lord Byron. Speculation is rife that Arnault accepted the steep asking price amidst rumors of Gucci – the flagship brand of Kering, LVMH's closest competitor – reportedly in discussions to sign a long lease on 150.
In a nutshell, the latest acquisition by Bernard Arnault serves as a further extension of the ongoing real estate chess game between Kering and LVMH. Over the past 18 months, the two luxury giants have collectively invested around two billion euros in central Paris real estate and prominent retail spaces. The modern adaption of the words of renowned military strategist Carl Von Clausewitz seems apt - real estate wars mirror the continuation of luxury wars, albeit by different means.
