Kering has finalised a New York property deal with private equity firm Ardian, the French luxury group said Tuesday.

Under the agreement, Kering is contributing the 115,000-square-foot property at 715-717 Fifth Avenue to a newly created joint venture, in which Ardian will hold a 60 percent stake with Kering holding the remaining 40 percent and receiving $690 million in proceeds.

The deal is part of Kering’s push to maintain control of prime retail locations while raising cash and reducing its heavy debt load. The company has been hit particularly hard by a sector-wide slowdown in luxury demand.

In January, Kering signed a similar deal with Ardian, transferring three properties in Paris, including key buildings on Avenue Montaigne and the Place Vendôme, to a joint venture with the firm and raising $860 million in proceeds.

The company recently inked a €4.7 billion deal to offload its beauty division to L’Oréal and announced plans to downsize its retail network as it seeks to improve the performance of its biggest label Gucci while also developing its smaller fashion houses.

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