Saudi Arabia’s sovereign wealth fund has bought a stake in the upmarket department store Selfridges in its latest move on a high-profile British asset.
The Saudi Public Investment Fund (PIF) said it had signed a deal to buy a 40% stake in the loss-making retailer for an undisclosed sum.
The stake had been owned by Signa Group, the Austrian property group which bought Selfridges with the Thai conglomerate Central Group for £4bn in 2021.
Central Group, which began with a single store in Bangkok run by Tiang Chirathivat in the 1950s and listed part of the business on the Thai stock exchange in 2020, then took full control last year after Signa filed for insolvency in November.
PIF will now own Selfridges Group, which has its main shop on London’s Oxford Street and a further 17 luxury department stores around the world, in partnership with Central Group, with the aim to “accelerate growth”.
Selfridges was founded in London by American businessman Harry Gordon Selfridge in 1909 and has been named best department store in the world four times. It is a leading tourist attraction in London, where it is known for putting on themed shopping events and creative displays, as well as offering fine dining and selling designer goods.
PIF said the investment aligned with its strategy of “investing in key strategic sectors globally and is underpinned by a shared vision to unlock further value in Selfridges”. Selfridges Group owns the De Bijenkorf chain in the Netherlands as well as Brown Thomas and Arnotts in Ireland and four UK stores – in London, Birmingham and two in Manchester.
Turqi Al-Nowaiser, the head of the international investments division at PIF, said: “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.”
PIF is one of the world’s most active sovereign wealth funds, with more than $700bn (£551bn) in assets driven by its oil wealth. It has invested heavily in sports such as football – including Newcastle United – Formula One, boxing and golf in the past few years in what it says is an attempt to diversify its economic portfolio away from oil.
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The fund is controlled by Saudi Arabia’s crown prince, Mohammed bin Salman, whose government has been accused of numerous human rights violations Critics have accused the government of using PIF to “sportswash” its human rights record.
The UK’s three most famous department stores are controlled by overseas owners. The Qatar Investment Authority owns Harrods, while Hong Kong’s Dickson Concepts controls Harvey Nichols.
The Weston family, one of Canada’s richest families, had owned the Selfridges brand for almost 20 years before the sale in 2021. The deal came shortly after the death of the 80-year-old head of the family, W Galen Weston, who had spearheaded the purchase of Selfridges in 2003.