© Reuters. FILE PHOTO: Prada merchandise are seen at their retailer on the Woodbury Widespread Premium Shops in Central Valley, New York, U.S., February 15, 2022. REUTERS/Andrew Kelly/File Photograph
MILAN (Reuters) – Italian vogue home Prada (OTC:) has paid $425 million to purchase the constructing on Fifth Avenue in New York which at the moment hosts its retailer, the corporate mentioned on Wednesday.
Prada, which has been leasing its five-storey retailer at 724 Fifth Avenue since 1997, mentioned it had paid the value in money utilizing inner sources.
“The board believes that the property’s location offers high strategic value being characterised by increasing scarcity and long-term potential,” Prada mentioned in its assertion.
It added that the property, a 12-floor constructing in whole, might additionally present workplace premises and storage for the Hong-Kong listed firm, along with its retail area.
New York’s Fifth Avenue is the world’s most costly retail road, in accordance with a world rating from actual property companies agency Cushman & Wakefield (NYSE:).
The broader Americas area has been a weak spot for Prada this yr, with retail gross sales falling by 1.3% throughout the first 9 months, contrasting with double digit progress within the Asia Pacific, Japan and European markets.
Actual property funding financial institution Eastdil Secured suggested the vendor, 724 Fifth Price Proprietor LLC, on the deal.
