Saudi Arabia’s Public Investment Fund has made an offer that would boost its stake in Selfridges to 50 percent, according to documents seen by Bloomberg News, after the UK department store’s co-owner fell into insolvency.
PIF already owns a 10 percent share in the Selfridges properties and has offered to buy the remaining 40 percent stake for a cash price of £1 million ($1.3 million) from Signa’s flagship property unit, according to an insolvency report filed by the division of the troubled real estate and retail empire dated Jul. 15. The properties include sites in London’s Oxford Street and Manchester.
The Saudi wealth fund is undertaking due diligence with the help of advisers, according to the document. The other 50 percent of Selfridges is owned by the Thai retail conglomerate Central Group.
A representative for PIF declined to comment. A spokesperson for Signa Prime’s administrator also declined to comment on the report.
The potential deal comes as the sprawling group of companies founded by Rene Benko is slowly unwound after its key property units fell into insolvency processes at the end of 2023. The Austrian tycoon purchased the stake in Selfridges in 2022 in one of his most ambitious acquisitions, before syndicating a portion of the 50 percent share to the PIF.
PIF, which is a creditor to Signa, would reduce its claims against the group by as much as £52 million as part of the deal, according to the document. Bangkok Bank, which provided the senior loan for Selfridges’ Oxford Street site, would also waive certain claims against Signa Prime to the amount of about €733 million ($798 million), it said.
Signa also previously had joint ownership of Selfridges’ operating business, which has been now taken over by Central Group.
The department store chain, founded in 1908 by Wisconsin-born Harry Gordon Selfridge, is best-known for its Oxford Street flagship store which for decades was synonymous with high-end London retail.
By Libby Cherry with assistance from Matthew Martin and Sonja Wind.
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