Kering, the parent company of Gucci, has agreed to sell a majority stake in a Fifth Avenue property in New York City to private equity firm Ardian for $690 million. The luxury group continues to divest assets to improve its financial position.

The two French companies announced on Tuesday that Kering will retain a 40% stake in the property while transferring the remaining 60% to a newly formed joint venture with Ardian. The Fifth Avenue property spans 115,000 square feet of prime luxury retail space.

The transaction values the property at $900 million, with Kering netting $690 million from the deal.

Kering stated the sale aligns with its real estate strategy, which focuses on securing prime retail locations for its brands while enhancing financial flexibility.

Ardian noted that this Fifth Avenue deal marks its first real estate investment in the U.S.

Earlier this year, the two companies executed a similar transaction involving a portfolio of Parisian real estate assets, where Kering injected properties into a joint venture with Ardian in exchange for capital while retaining a minority stake.

In October, Kering also agreed to sell its beauty business to L’Oréal—an initial move by new CEO Luca de Meo to revitalize the group and reduce its debt burden.