Saudi fund aims to double Selfridges stake

Saudi Arabia’s Public Investment Fund (PIF) aims to increase its stake in Selfridges to 50 per cent, after the UK department store’s co-owner faced insolvency.

PIF, which already owns 10 per cent of Selfridges properties, has offered £1 million ($1.3 million) to buy an additional 40 per cent stake from Signa’s property unit, per a July 15 insolvency report. The properties include prime locations on London’s Oxford Street and in Manchester. Due diligence is underway with PIF’s advisers. The other 50 per cent of Selfridges is owned by Thai retail conglomerate Central Group.

Both PIF and Signa Prime’s administrator declined to comment.

This move follows the insolvency of Rene Benko’s property units in late 2023. Benko purchased his Selfridges stake in 2022 and later syndicated part of it to PIF.

PIF will reduce its claims against Signa as part of the deal. Additionally, Bangkok Bank will waive claims against Signa Prime amounting to €733 million.

Previously, Signa co-owned Selfridges’ operating business, now fully controlled by Central Group. Founded in 1908, Selfridges is famed for its Oxford Street flagship store, a symbol of luxury retail in London.

Attribution: Bloomberg