In a significant development, Saudi Arabia’s sovereign wealth fund has acquired a substantial 40% stake in the renowned department store, Selfridges. This move marks a pivotal partnership with Thailand’s Central Group, which retains a 60% majority share.
- The acquisition follows the collapse of Austrian firm Signa, previously holding the stake.
- Saudi’s Public Investment Fund (PIF) solidifies its growing influence in the retail sector through this strategic acquisition.
- Selfridges Group operates 18 luxury stores across the UK, the Netherlands, and Ireland.
- Central Group and Saudi PIF aim to strengthen Selfridge’s financial position and support its future growth.
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has taken a significant step in the retail sector by securing a 40% ownership of Selfridges. This acquisition results from the previous Austrian stakeholder, Signa, succumbing to financial pressures and marks PIF’s strategic expansion within the industry.
Thailand’s Central Group remains the majority stakeholder with a 60% share. The collaboration between Central Group and Saudi PIF signifies a joint commitment to enhancing Selfridges’ market position. Both entities are set to invest further into the group, aiming to bolster its financial robustness and support its growth trajectory.
Selfridges Group is an established name, operating 18 luxury department stores within the United Kingdom, the Netherlands, and Ireland. Notable locations include the iconic Selfridges on Oxford Street in London and Manchester’s Exchange Square, which form part of this prestigious portfolio.
Tos Chirathivat, executive chairman and CEO of Central Group, expressed confidence in this new alliance. He emphasised the synergistic potential of combining Central Group’s luxury retail expertise with PIF’s extensive investment track record, suggesting a promising future for the Selfridges Group.
Over the past three years, PIF had already been involved to some extent, holding a minor 10% stake after initial investments during an auction led by the Weston family. This latest move consolidates PIF’s presence and influence within the well-regarded department store enterprise.
This strategic partnership promises to fortify Selfridges’ market standing and enhance its growth prospects in the luxury retail sector.
