The valuation of department store Selfridges’ property assets has significantly declined.
- According to The Sunday Times, Selfridges’ property portfolio saw its value reduced by £638.6m, a 20.6% decrease.
- Loans totalling over £1.7bn, secured against Selfridges’ property, will mature in August 2025.
- External factors such as interest rates and market rents contributed to the markdowns, according to a company spokesperson.
- Central Group, in partnership with Saudi Arabia’s Public Investment Fund, is involved in the total buyout of Signa’s interest in Selfridges.
The luxury retailer Selfridges has experienced a substantial reduction in the valuation of its property portfolio, with assets depreciated by £638.6 million, equating to 20.6%, as per a report by The Sunday Times. This markdown reflects significant external pressures affecting the retail sector.
It was reported that over £1.7 billion in loans, which are secured against Selfridges’ freehold properties, are due to mature in August 2025. This places additional financial pressures on the department store chain as it manages its asset values amidst challenging market conditions.
A spokesperson from Selfridges attributed these financial adjustments to various external market factors, prominently interest rates and current market rental values. This reflects the broader economic environment facing retailers globally.
In a strategic business development, Central Group, in conjunction with Saudi Arabia’s Public Investment Fund, has engaged in a total acquisition of Signa’s share in Selfridges Group. This partnership highlights significant international investment interest in the brand despite its current valuation adjustments.
Additionally, reports from July indicated that Andrew Keith, the Chief Executive Officer of Selfridges, is set to depart from the company after a four-year tenure. This marks a period of transition as the company navigates these financial challenges and shifts in leadership.
Selfridges is navigating significant valuation challenges within its property portfolio amid ongoing market pressures and strategic transitions.
