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Prada Buys New York Fifth Avenue Store Building for $425 million

Prada bags and shoes.
Prada bags and shoes. (Shutterstock)

Italian fashion house Prada has paid $425 million to buy the building on Fifth Avenue in New York which currently hosts its store, the company said on Wednesday.

Prada, which has been leasing its five-storey store at 724 Fifth Avenue since 1997, said it had paid the price in cash using internal resources.

“The board believes that the property’s location offers high strategic value being characterised by increasing scarcity and long-term potential,” Prada said in its statement.

It added that the property, a 12-floor building in total, could also provide office premises and storage for the Hong-Kong listed company, in addition to its retail space.

New York’s Fifth Avenue is the world’s most expensive retail street, according to a global ranking from real estate services firm Cushman & Wakefield.

The wider Americas region has been a weak spot for Prada this year, with retail sales falling by 1.3 percent during the first nine months, contrasting with double digit growth in the Asia Pacific, Japan and European markets.

Reporting by Elisa Anzolin; Editing by Keith Weir

Learn more:

Lorenzo Bertelli: The Prince of Prada Prepares to Take the Wheel

The 35 year-old former racecar driver — son of designer Miuccia Prada and the company’s chairman Patrizio Bertelli — is restructuring the Milanese group from the inside out. ‘Everything’s changing so that everything can stay the same,’ the BoF 500 cover star said about readying Prada for its next chapter.

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