Saudi Arabia’s sovereign wealth fund has purchased a significant stake in the famous London-based department store, Selfridges, in the latest high-profile deal initiated by the Gulf state in the United Kingdom.
This week, Saudi Arabia’s Public Investment Fund (PIF) announced that it had signed a deal to buy a 40 per cent stake in Selfridges, taking part ownership of the main shop on London’s Oxford Street and a further 17 luxury department stores around the world. The amount at which the Kingdom purchased the chain remains undisclosed.
The stake had previously been owned by Austrian property company, Signa Group, which had itself bought Selfridges along with the Thai conglomerate Central Group for £4 billion ($5.2 billion) in 2021.
Since then, however, the retailer had been making a loss in profits, forcing Signa to file for insolvency back in November last year and leaving Central Group to take full control. Almost a year later, the Saudi PIF now owns Selfridges in partnership with the Thai conglomerate, ending months of bids and negotiations.
With the aim of the new partnership to “accelerate growth”, the PIF has stated that the investment aligns with its strategy of “investing in key strategic sectors globally and is underpinned by a shared vision to unlock further value in Selfridges”.
Turqi Al-Nowaiser, the head of the international investments division at PIF, also stated that “We are pleased to be partnering with Central Group in Selfridges Group, one of Europe’s most iconic luxury department stores. This transaction allows Selfridges Group to build on its position as a premier retail destination.”