- Luxury goods giant LVMH is investing billions of dollars in real estate, the Wall Street Journal reported.
- The company’s strategy involves purchasing older properties and creating new urban centers.
- Last year, the company spent $2.1 billion acquiring real estate in Paris ahead of the Olympics.
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Louis Vuitton Moët Hennessy, one of the most famous brands in fashion, wine and spirits, is transforming old neighborhoods into upscale plazas and shopping centers around the world.
according to wall street journalL. Catterton, the private equity firm and parent company of brands like Louis Vuitton, Dior and Fendi, is also betting billions on in-person shopping for purchases. We renovated old shopping centres, hotels and warehouses into complexes dedicated to our brand.
Many of the strategies involve buying property, sometimes in historic districts, such as the Pont Neuf district in Paris, where LVMH sued, the report said. historian There are concerns about the integrity of La Samaritaine department store with 150 years of history and its transformation We created an affluent neighborhood by working with world-class architects like Frank Gehry to build shopping centers.
“We’re building cities,” Michael Burke, head of LVMH’s fashion group, told the Journal.
“We’re taking something that doesn’t exist, and when it’s completed, it will create an urban center with residential, retail and cultural aspects,” Burke told the outlet. “Most of our brands were distressed brands. Like this property, we bought them because they were in disrepair.”
This “abandoned” real estate also includes areas like Miami’s Design District, where the company has turned 30 acres of warehouses and abandoned office buildings into upscale spaces with museums, offices, and, of course, retail centers. changed. LVMH and local developers took over the block in the warehouse district over his 14 years. Currently, asking rents for retail space in the area have increased by 200% since 2019. miami design district said in a blog post, citing investment management firm JLL.
Burke told the Journal that the company entered the real estate world in 2010, when he persuaded CEO Bernard Arnault to reinvigorate a warehouse district in Miami. The company currently has multiple locations in other cities overseas, including Paris and Montreal. The company spent $2.1 billion last year acquiring real estate in Paris ahead of the Olympics, the paper said.
The luxury brand is among the companies spending billions of dollars on luxury stores and experiences. Kering, which owns Gucci and Saint Laurent, has spent $1.4 billion on a building on Milan’s Via Montenapoleone.
According to the newspaper, Chanel and LVMH are also interested in buying properties on Fifth Avenue in New York and the Champs-Elysées in Paris.
But this major acquisition is not without controversy.
In Paris, The New York Times previously Luxury goods giants are reportedly buying up real estate in Paris’ Marais district, helping to drive out low-income immigrant businesses.
“This used to be a real neighborhood where families and children lived,” Amar Sitaeb, a minimart owner, told The Times in Male. “Now everything is gone.”
The magazine also reported that the Montreal resident has poured $1.5 billion into a mixed-use luxury shopping center called “Montreal.” royal mount, are concerned about the development’s impact on an already established downtown. Royalmount is historic industrial area.
global news canada In 2019, it was reported that the project was estimated to increase vehicle traffic by 20,000 to 70,000 vehicles. Car every day. The company responded by building pedestrian bridges connecting shopping centers. Montreal’s public transportation system.
“Without proper planning, without the integration and introduction of transportation, it’s almost chaotic,” Saint-Laurent Mayor Alain D’Souza told Global News at the time.
LVMH did not immediately respond to a request for comment from Business Insider.