Bernard Arnault, the billionaire CEO of luxury conglomerate LVMH, has once again made headlines with his latest acquisition on the renowned Champs Elysées in Paris. Arnault recently purchased a sprawling building covering an impressive 18,000 square meters at 150 avenue Champs Elysées. The estimated cost of this acquisition is close to one billion euros, equating to around €55,000 per square meter.
This move by Arnault has taken many real estate professionals by surprise, considering the current softness in the French real estate market. However, it is no secret that Arnault has always had a deep fascination and admiration for the Champs Elysées, often hailed as one of the most beautiful avenues in the world. Additionally, Arnault’s luxury brand Louis Vuitton already owns its largest global flagship store at 101 Champs Elysées. Moreover, plans are underway to construct another expansive store and the brand’s first-ever hotel at 103 Champs Elysées.
The acquisition of 150 avenue Champs Elysées was swiftly completed in less than three months through a share deal that was signed off-market. The property was reportedly purchased from a group of investors led by Mimco Asset Management, a Canadian listed investment fund. Mimco held a 72.6% stake in the building, which they acquired for €750 million in the spring of 2022. This quick transaction allowed Mimco to realize a significant profit in just 18 months.
The intentions for this newly acquired building are currently unknown, although speculations suggest that Arnault may turn it into a flagship store for Dior, with the brand’s new headquarters located above. LVMH recently altered its plans for 103 Champs Elysées, originally designated as Dior’s headquarters, and instead allocated it to Louis Vuitton. Another potential tenant for 150 avenue Champs Elysées could be Tiffany, the American jewelry brand that LVMH acquired in January 2021.
Situated on the upper right side of the Champs Elysées, just below a Cartier flagship and 100 meters away from the Arc du Triomphe, the building at 150 avenue Champs Elysées also extends to two other streets, rue Arsène Houssaye and rue Lord Byron. Whispers of a potential long lease agreement with Gucci, LVMH’s rival brand under Kering, may have pushed Arnault to pay a premium price for this property.
This acquisition by Bernard Arnault marks the latest development in an ongoing real estate battle between LVMH and Kering. Over the past 18 months, both luxury conglomerates have invested approximately two billion euros in central Paris real estate properties and high-profile retail spaces. It is evident that the battleground has shifted from the realm of high fashion to prime real estate, as these industry giants continue their fierce competition in the luxury market.
In conclusion, Bernard Arnault’s purchase of the building at 150 avenue Champs Elysées reflects his unwavering dedication to expanding his luxury empire. Through his strategic real estate moves, Arnault is solidifying LVMH’s presence on the historic and prestigious Champs Elysées. As the luxury war rages on, it becomes increasingly apparent that real estate has become a crucial battleground for these influential players in the industry.
