# LVMH buys the Villa Bagatelle in Cannes for €46.5 million

By [Brandon Donnelly](https://brandondonnelly.com) · 2024-12-21

lvmh, real-estate, villa-bagatelle, cannes, cannes-film-festival, real-estate-transaction, fashion, south-of-france

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One school of thought is that if you're _not_ in the real estate business, and you're in some other business like fashion, then you probably shouldn't own a lot of your real estate. The general idea is that the opportunity cost of doing so is too great; it ties up a lot of capital, taking it away from the core business.

But then there's LVMH.

In 2023, the company [spent €2.45 billion on real estate](https://www.businessoffashion.com/news/luxury/lvmh-bought-a-50-million-villa-in-cannes-for-brand-events/) across the world, mostly for its retail stores. And then this week it was [announced](https://www.businessoffashion.com/news/luxury/lvmh-bought-a-50-million-villa-in-cannes-for-brand-events/) that, earlier this year, the company closed on the Villa Bagatelle in Cannes for €46.5 million. Supposedly this is one of the most expensive homes ever sold in the city.

LVMH plans to use the 12-suite villa for brand activations during events like the Cannes Film Festival, and then rent it out when they don't need it.

So clearly they are of a different school of thought. They are blending experiential marketing and real estate investing, which is an interesting approach. It also makes me wonder if this has something to do with the fact that Bernard Arnault started his career in real estate.

For more information on the Villa Bagatelle or to inquire about renting it for your next family vacation, [go here](https://www.magrey.com/villa-bagatelle-p785.html).

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*Originally published on [Brandon Donnelly](https://brandondonnelly.com/lvmh-buys-the-villa-bagatelle-in-cannes-for-euro465-million)*