Luxury magnate Bernard Arnault, the Chairman and CEO of LVMH, has once again expanded his impressive portfolio with the recent acquisition of a prestigious building on the renowned Champs Elysées in Paris. Arnault reportedly purchased 150 avenue Champs Elysées, an impressive property spanning 18,000 square meters, for close to one billion euros. With a staggering cost of €55,000 per square meter, this acquisition highlights Arnault’s unwavering passion for the iconic avenue.

The purchase of 150 avenue Champs Elysées has surprised experts in the real estate industry, considering the currently sluggish property market in France. However, it is no secret that Arnault has a deep affection for the Champs Elysées. His renowned brand, Louis Vuitton, already boasts its largest global flagship store at 101, and has plans to construct another significant store and a hotel at 103.

The negotiations for the acquisition of 150 avenue Champs Elysées were remarkably swift, taking less than three months to complete. The transaction was reportedly an off-market share deal, with Mimco Asset Management, a Canadian listed investment fund, and a group of investors led by them selling their 72.6% stake in the property to LVMH. Only 18 months prior, they had acquired the building for €750 million, making a substantial profit from the sale.

As for the plans for the newly acquired building, Arnault’s intentions remain unknown. Speculation suggests that it could potentially become a new retail flagship for Dior, with the brand’s headquarters located above the store. Previously, LVMH had altered its plans for 103 avenue Champs Elysées, originally intended as Dior’s headquarters, in favor of Louis Vuitton. Another possibility is that Tiffany, the American jewelry brand acquired by LVMH in 2021, may become a tenant at 150 avenue Champs Elysées.

Situated on the upper right side of the Champs Elysées, 150 avenue Champs Elysées is in close proximity to the famous Arc de Triomphe, just a stone’s throw away from a Cartier flagship store. The property not only extends along the main avenue but also includes portions on two other streets, rue Arsène Houssaye and rue Lord Byron. There are reports suggesting that Arnault may have been motivated to pay a premium for the building due to rumors of Gucci, LVMH’s main rival under the Kering group, considering a long lease agreement for the same property.

This acquisition is the latest development in an ongoing real estate battle between LVMH and Kering. Over the past 18 months, both luxury conglomerates have collectively spent approximately two billion euros on luxurious properties in central Paris and high-profile retail spaces. These real estate skirmishes mirror the intense competition between luxury brands. As Carl Von Clausewitz famously said, “real estate wars are nothing but the continuation of luxury wars by other means.”

Links:

1. Tiffany & Co. Set to Rent Champs Elysées Space from LVMH

2. LVMH Widens Walkway Home to Flagship Brands