Owner of luxury bands Gucci, Saint Laurent—Kering SA reached a deal to sell a 60% stake in three prestigious Paris properties to French private equity firm Ardian SAS for €837 million (~$862 million).

Kering sells 60% of Paris properties amid Guccis poor performance Kering divests significant stakes in Paris real estate as luxury sector faces challenges

Kering SA agreed to sell a majority stake in three luxury Paris properties to French private equity firm Ardian SAS, a deal that will net the struggling owner of the Gucci fashion label €837 million ($861 million).

The French group said it will receive net proceeds of €837 million. Kering will retain 40% of the ownership in the prime real-estate portfolio.

Gucci owner Kering has transferred three of its Paris real estate assets to a new joint venture with French private equity firm Ardian, freeing up 837 million euros ($860.27 million) in proceeds, the company announced on Wednesday.