PHOTO: Miranda Kerr Models $2.5 Million Bra

10/13/2011 at 12:00 PM ET

Miranda Kerr BraCourtesy Victoria’s Secret

She must be on Santa’s good list! Victoria’s Secret model Miranda Kerr has been chosen by the brand to model the iconic Fantasy Treasure Bra — a $2.5 million diamond-studded piece — in the Christmas Dreams & Fantasies catalogue and during the Victoria’s Secret Fashion Show in November.

“It’s such an honor to wear the bra,” Kerr tells PEOPLE. “And it’s such a piece of artwork! It’s absolutely stunning — it kind of feels a little mermaid-like — but I can’t believe I’m wearing $2.5 million on my chest.”

The aqua push-up brassiere, created in part by Long Island’s London Jewelers, is handset with nearly 3,400 precious gems, including 142 carats of white and yellow diamonds, pearls, faceted citrines and aquamarines, all set in 18-karat white and yellow gold. The centerpiece features two white diamonds — each more than 8 carats — and two 14-plus-carat yellow diamonds.

“We put a lot of love into this bra,” jeweler Candy Udell tells PEOPLE. Adds daughter Randi, “We put a lot of our most favorite elements into it, such as the tassel — it’ll be wonderful with her walking down the runway, the tassel swinging with her body. We thought about the runway show, and what would catch everyone’s attention.”

The runway show will be a very special moment for Kerr: aside from wearing the Fantasy Treasure Bra, she’ll be returning to the Victoria’s Secret catwalk after taking a one-year hiatus while she was pregnant with son Flynn. “It’s very special,” she says of rejoining the show. “And now I feel better than ever. I feel healthier than I’ve ever felt. It was wonderful to have a bit of time off after I was pregnant and having Flynn. But now I’m back in the swing of things and it feels good.”

In fact, you could say it feels really good. “I feel like more than $1 million,” she jokes. “I feel like $2.5 million.”

Catch the Victoria’s Secret Fashion Show — featuring performances by Kanye West and Maroon 5 — on CBS this November.

–Kate Hogan

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