MILAN, April 4 (Reuters) - French luxury group Kering

said on Thursday it acquired an 18th century building

in via Montenapoleone, the heart of Milan's most exclusive

shopping area, for 1.3 billion euros ($1.4 billion), from

Blackstone Property Partners Europe.

Kering's deal is the latest in a series of acquisitions of

buildings in top fashion locations by big luxury groups.

The building, which already hosts Saint Laurent's store, is

developed over five floors. It includes more than 5,000 square

meters of retail space, making it one of the largest properties

in via Montenapoleone, according to the statement.

"This investment is part of Kering's selective real estate

strategy, aimed at securing key highly desirable locations for

its houses," the group said in a statement.

Kering, which last month warned that its first-quarter sales

were likely to drop by around 10%, added that it aimed to manage

its real estate portfolio with the goal of retaining a stake in

its prime assets alongside co-investors in dedicated vehicles,

as it did for a building for its Italian label Bottega Veneta in

Tokyo.

($1 = 0.9215 euros)

(Reporting by Elisa Anzolin; Additional reporting by Mimosa

Spencer in Paris; Editing by Gavin Jones and Muralikumar

Anantharaman)