Saudi Arabia's sovereign wealth fund, the Saudi Public Investment Fund (PIF), has agreed to acquire a significant stake in department store chain Selfridges. The PIF will partner with the current co-owners, the Thai-based Central Group, to take control of the retailer. This development follows the collapse into insolvency last year of Austrian real estate conglomerate Signa, which had co-owned Selfridges with Central.
The PIF will now hold a 40% stake in Selfridges, while Central will own the remaining 60%. Last year, Central converted a loan into equity to gain majority control of Selfridges and has now purchased the remaining Signa-owned stake for an undisclosed sum, alongside the PIF. This comes three years after Central and Signa acquired Selfridges for £4 billion.
Founded by Harry Gordon Selfridge in 1908, the retailer operates four UK stores – two in Manchester, one in Birmingham, and its flagship site on London’s Oxford Street – as well as 14 other shops including Arnotts and Brown Thomas in Ireland. The owners have stated that the deal will also involve new investment from the PIF and Central to bolster the retail firm's position and future growth. In addition to this, Saudi Arabia's PIF is the majority owner of Newcastle United and holds stakes in Heathrow Airport and London-based hotel group Rocco Forte.
Turqi Al-Nowaiser, Deputy Governor and Head of International Investments Division at PIF, expressed his satisfaction with the partnership with Central Group .
