Parisian billionaire and philanthropist François Pinault, is taking over a historic commercial building in Paris to showcase his €1.2bn (US$1.4bn, £950m) modern art collection to the public.

Pinault, who once ran a fashion empire including Gucci, Yves Saint Laurent, Puma and Balenciaga before handing the reigns over to his son François-Henri in 2001, follows the likes of Louis Vuitton and Prada in opening public museums to store their collections.

“It obviously resonates very well with the activity of our houses – the cultural dimension and its anchorage in tradition is very important,” Pinault told WWD. “There’s an obvious link between art and fashion. All the artistic directors of our houses are all involved in art.”

The collection – which features the work of artists such as Damien Hirst and Mark Rothko – has been displayed at Pinault’s private museums in Venice after the collector failed to find a suitable home for them in the French capital, following several years of attempting to build a museum on the site of an old Renault car factory.

Pinault takes over the 150,000sq ft (1,400sq m) Bourse de Commerce building, mainly used to provide services to businesses by the Paris Chamber of Commerce since its opening in 1763.

Part of a €1bn (US$1.15bn, £791m) project to revive the Les Halles district of Paris, Pinault will have to renovate the building, with an expected opening date of 2018.

'Oscars for Museums' honours Gehry's Fondation Louis Vuitton, Whitworth, Whitney, MOMA and more

Prada's new arts campus has design by Rem Koolhaas and Wes Anderson

French President among guests at Louis Vuitton Foundation launch