Saudi Wealth Fund Acquires 40% Stake in Selfridges
In a significant move, the Saudi Public Investment Fund has agreed to purchase a substantial stake in the renowned department store firm Selfridges. The investment fund will be partnering with the current co-owners, Thai-based Central Group, to assume control of the retailer.
This development follows the insolvency of Austrian real estate conglomerate Signa, which previously held ownership of Selfridges alongside Central. Now, the Saudi Public Investment Fund will acquire a 40% stake in Selfridges, with Central retaining the remaining 60% share of the business.
Last year, Central had converted a loan into equity to secure a majority stake in Selfridges. However, with the collapse of Signa, the opportunity arose for Central and the Saudi wealth fund to acquire the remaining stake previously held by Signa, although the financial details of this transaction remain undisclosed.
The acquisition comes three years after Central and Signa jointly purchased Selfridges for £4 billion. Established in 1908 by Harry Gordon Selfridge, the department store chain has a prominent presence in the UK with four stores including flagship locations in London, Birmingham, and Manchester.
In a statement, Turqi Al-Nowaiser of PIF expressed excitement about the partnership with Central Group, highlighting Selfridges as one of Europe’s most prestigious luxury department stores. The collaboration is aimed at strengthening Selfridges Group’s position as a leading retail destination.
The deal not only involves the acquisition of the stake but also includes additional investments from PIF and Central to enhance the financial standing and future growth prospects of the retail firm. Saudi Arabia’s Public Investment Fund, known for its diverse investments, also holds the majority ownership of Newcastle United Football Club and stakes in other prominent entities like Heathrow Airport and Rocco Forte hotel group in London.
Tos Chirathivat, executive chairman and CEO of Central Group, expressed readiness to welcome PIF as a new partner and emphasized the shared vision for the growth and development of Selfridges Group. The collaboration between PIF and Central aims to leverage the fund’s global investment expertise with Central’s industry knowledge to drive the continued success of Selfridges Group.
The acquisition of a significant stake in Selfridges by the Saudi wealth fund marks a strategic move that is poised to shape the future trajectory of the iconic luxury department store chain, setting the stage for enhanced growth and prosperity under the new partnership.