Chanel bought a building on Avenue Montaigne, a high-profile shopping destination in Paris, as European luxury players swoop in to secure prime real estate for their boutiques.

The fashion label known for its tweed jackets and skirts purchased the property at 42 Avenue Montaigne, about a block away from the Champs-Élysées, according to a statement, which didn’t disclose the transaction terms.

Chanel is already present in the building with a boutique, and there’s another of the brand’s stores on 51 Avenue Montaigne. Italian insurer Generali was the seller, according to people familiar with the matter, who asked not to be identified discussing private information.

The acquisition of 42 Avenue Montaigne follows other real estate purchases last year in Paris and in cities including London and Biarritz, Chanel said in the statement.

Owning a store can protect a retailer from ever-increasing rents and make it easier to justify the significant expense required to fit out boutiques and turn them into destinations that big-spending customers want to spend hours shopping in. Luxury players, notably LVMH Moet Hennessy Louis Vuitton SE, have invested heavily to transform boutiques into art and food destinations.

LVMH opened its Christian Dior flagship store at no. 30 Avenue Montaigne over two years ago, and it houses a museum, restaurant, guest suite and gardens. It worked with renowned architect Peter Marino, who’s also handled retail projects for Chanel.

The company “would never have done a boutique like 30 Montaigne for Dior in Paris had it been renting the location,” LVMH Chief Financial Officer Jean-Jacques Guiony told Bloomberg earlier this year. “If we’re a landlord, it allows us to have a different vision.”

The Avenue Montaigne is a top destination for luxury shoppers, with some staying at the high-end Plaza Athénée hotel, where nightly rates run as much as €2,500 ($2,780) and higher.

Chanel’s current property portfolio’s value is more than $7 billion, with a significant portion having been bought over the last 10 years, a company representative said. The firm plans a major renovation for the 42 Avenue Montaigne boutique beginning in 2029, a person familiar with the matter said.

Groups from Gucci owner Kering SA to Prada SpA have also made splashy property acquisitions over the past year.

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