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By Elvira Pollina
MILAN, Sept. 20 (Reuters) – Italian fashion house Cavalli plans to open an ultra-luxurious $ 545 million skyscraper in Dubai in collaboration with property developer Damac Properties.
Damac founder Hussain Sajwani rescued Florence-based Cavalli in November 2019 through his private investment firm Vision Investments, part of the DICO group, owner of luxury resorts, hotels and of shopping centers.
“I am delighted to launch the Cavalli Tower a few days before Milan Fashion Week to illustrate the rebirth of the fashion legend,” Sajwani said in a statement Monday.
The multi-million dollar project, a milestone in relaunching the luxury brand, which hopes to break even in 2023, is “an effortless extension of (Cavalli’s) vision beyond models, clothing and apparel. sensational parades, âSajwani added.
The 70-story tower will be located in the Dubai Marina and will have 485 units, construction of which is expected to begin in 2022 and is expected to be completed in four years.
As cash-rich clients demand experiences beyond luxury goods, more and more in the industry, including Italian Armani and high-end jeweler Bulgari, are investing in hotels and real estate, especially in big cities and exotic destinations.
Famous for its prints and bold designs, Cavalli is struggling to boost sales and gain visibility in an industry increasingly dominated by large conglomerates such as LVMH and Kering.
Sajwani said he was determined to rebuild Cavalli, relaunch the brand in key markets including North America, and that women’s clothing would retain a “leadership position.”
He added that he aimed to push the brand into other areas of business “while continuing the legacy of Roberto Cavalli by respecting his established fashion traditions”.
Cavalli chief executive Ennio Fontana said the breakeven point will be reached in 2023, but did not give details. (Reporting by Elvira Pollina; Writing by Giulia Segreti; Editing by Alexander Smith)