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Saudi Arabia acquires 40 per cent stake in Selfridges, partnering with Thailand’s Central Group

October 8, 2024

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 surrounding Selfridges’ future, saw PIF purchase the stake from Austrian tycoon Rene Benko’s property business, Signa, which collapsed in late 2023 amid a fraud investigation into Mr Benko.

The agreement means Central Group, a family-owned retail conglomerate, will hold a 60% majority stake in Selfridges’ property and operating businesses. The acquisition boosts PIF’s position from a 10% stake, reinforcing Saudi Arabia’s strategic use of wealth to expand its international investments.

PIF, which also holds 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 acquisition of Selfridges forms part of Saudi Arabia’s wider effort to diversify its economy away from oil dependence.

Ros Chirathivat, Central Group’s executive chairman, welcomed the partnership with PIF, noting the potential for growth: “PIF’s proven global track record of investments combined with our luxury retail industry expertise, brand management skills and innovative approach, will allow Selfridges Group to continue to flourish.”

The deal includes new investment from both parties, primarily focused on reducing debt across Selfridges’ property portfolio. This comes after Selfridges Retail Limited, which oversees the UK stores and online platforms, reported a £38m loss for the year ending January 2023, despite a 30% rise in sales.

PIF’s deputy governor, Turqi Al-Nowaiser, expressed optimism about the partnership: “This transaction allows Selfridges Group to build on its position as a premier retail destination.” The partnership with Central Group is expected to enhance Selfridges’ financial standing and support its future development.

The acquisition follows the collapse of Signa and Mr Benko’s personal insolvency. Signa, which had previously owned 50% of Selfridges, had accumulated stakes in major international properties, including New York’s Chrysler Building and Berlin’s KaDeWe department store. Central Group had already increased its control over Selfridges by converting a €364m loan into equity, securing majority control before the deal with PIF was finalised.