Saudi Arabia’s Public Investment Fund (PIF) will acquire a 40% stake in the iconic UK department store Selfridges, while Thai retail giant Central Group retains the remaining 60%. This move follows the buyout of the insolvent Signa Group’s position in the company.
According to official statements, the PIF’s investment will encompass both Selfridges’ property and operating businesses, alongside a commitment from both shareholders to strengthen Selfridges’ financial standing.
The acquisition includes a binding agreement allowing PIF to completely buy out Signa’s interest, although detailed terms of the deal remain undisclosed.
This strategic partnership emerges in the wake of Signa’s collapse, a significant casualty of the struggling real estate sector. The company, founded by Austrian entrepreneur Rene Benko, has faced insolvency issues for several of its main property units.
Turqi Al-Nowaiser, deputy governor at PIF, expressed enthusiasm over the collaboration, stating, “We are pleased to partner with Central Group in Selfridges Group, one of Europe’s most iconic luxury department stores.” He emphasized that this transaction positions Selfridges as a leading retail destination.
Selfridges represents just one of Central Group’s ventures previously aligned with Signa, and recent challenges have prompted a restructuring of additional investments. Central is also taking over the operating firms associated with the Swiss department store chain Globus and the renowned KaDeWe store in Berlin.
Prior to this transaction, PIF already held a 10% stake in Selfridges, following a deal where a Signa unit offered part of its interest to the Saudi sovereign wealth fund.
Founded in 1908 by Harry Gordon Selfridge, Selfridges is renowned for its flagship store on London’s Oxford Street and operates 18 department stores across the UK, Netherlands, and Ireland.
A spokesperson for Selfridges welcomed the PIF as a new investor, reiterating confidence in their partnership with Central Group.
