Prada SpA won the contest for a spot in one of Milan’s most prestigious retail addresses, the Galleria Vittorio Emanuele II arcade.
The luxury company beat out Apple Inc. (AAPL), which doesn’t have a flagship store in Milan, and Gucci, said Laura Mari, an official for the municipality of Milan at the opening of the bids today. The 4,907-square-meter (52,820 square-foot) commercial space currently is partly occupied by a McDonald’s Corp. (MCD) restaurant.
The space is distributed over eight floors and will be leased for 18 years, Milan has said. The companies had to bid higher than the minimum rent of 2.1 million euros ($2.89 million) a year for the first five years and 3.6 million euros a year for the remaining period.
Prada offered an increase of 150 percent on the minimum rent, while Gucci and Apple proposed an additional 25 percent and 1 percent respectively, Mari said.
The Galleria Vittorio Emanuele is located in the center of Milan, adjacent to its landmark cathedral. Prada and Gucci already have stores in the shopping arcade that also features luxury retailers Tod’s and Louis Vuitton.
To contact the editor responsible for this story: Kenneth Wong at firstname.lastname@example.org