Saudi Arabia’s Public Investment Fund (PIF) has acquired a 40% stake in Selfridges, joining forces with Thailand’s Central Group to secure ownership of the iconic London department store.
The deal, which ends months of uncertainty over the future of Selfridges, saw PIF buy shares in Signa, the real estate company of Austrian tycoon Rene Benko, which went bankrupt at the end of 2023 amid a fraud investigation into Mr Benko.
The agreement means that Central Group, a family-owned retail business, will retain a majority 60% stake in Selfridges’ property and operations businesses. The acquisition strengthens PIF’s position from a 10% stake, strengthening Saudi Arabia’s strategic use of wealth to expand its international investments.
PIF, which also has stakes in Newcastle United, Sir Rocco Forte’s luxury hotels group, and Heathrow Airport, accounted for more than a quarter of global sovereign wealth fund investments last year. The Selfridges acquisition is part of Saudi Arabia’s wider efforts to diversify its economy away from dependence on oil.
Ros Chirathivat, Executive Chairman of Central Group, welcomed the partnership with PIF and noted the growth potential: “PIF’s proven global investment track record, combined with our expertise in the luxury retail sector, brand management skills and innovative approach, will enable Selfridges Group to continue to flourish.”
The deal includes new investments from both parties, mainly aimed at reducing debt in Selfridges’ property portfolio. This comes after Selfridges Retail Limited, which oversees the UK’s stores and online platforms, reported a £38 million loss for the year ending January 2023, despite a 30% increase in sales.
PIF Deputy Governor Turqi Al-Nowaiser expressed optimism about the partnership: “This transaction allows Selfridges Group to build on its position as a leading shopping destination.” The partnership with Central Group is expected to improve Selfridges’ financial position and support its future development.
The takeover follows the collapse of Signa and Mr Benko’s personal bankruptcy. Signa, which previously owned 50% of Selfridges, had built up stakes in major international properties including the Chrysler Building in New York and the KaDeWe department store in Berlin. Central Group had already increased its control of Selfridges by converting a €364 million loan into equity, securing majority control before the deal with PIF was completed.