In a noteworthy move, Bernard Arnault, the visionary behind LVMH, has secured the iconic 150 avenue Champs Elysées in a billion-euro real estate deal. Spanning 18,000 square meters and valued at approximately €55,000 per square meter, this strategic acquisition adds to Arnault’s impressive portfolio. The deal, completed just before the weekend, surprised industry experts amid the current softness in the French real estate market.
Arnault’s affinity for the Champs Elysées is evident, with Louis Vuitton, LVMH’s flagship brand, already boasting its largest global store at 101. Speculation surrounds the purpose of the new building, suggesting it could become a flagship for Dior, potentially serving as the brand’s new headquarters. Another contender for the space is Tiffany, the American jewelry brand acquired by LVMH in January 2021 for $15.8 billion.
Situated on the upper right side of the Champs Elysées, surrounded by luxury establishments like Cartier and the Arc du Triomphe, the building’s strategic location adds value to Arnault’s real estate holdings. The swift acquisition, completed as a share deal off-market in less than three months, may have been prompted by rumors of Gucci, Kering’s flagship brand and LVMH’s rival, considering a long lease on 150.
This move is part of an ongoing real estate chess battle between Kering and LVMH, with both conglomerates investing around two billion euros in central Paris properties and high-profile retail spaces over the past 18 months. In the competitive realm of luxury, real estate maneuvers become a continuation of business strategy, as seen in Bernard Arnault’s visionary approach to securing prime locations on the illustrious Champs Elysées.
