Selfridges’ property portfolio has notably decreased in value over the past year.
- A £638.6 million reduction marks a 20.6% drop from its original £3.1 billion valuation.
- The devaluation impacts key assets, including the Oxford Street flagship store.
- Over £1.7 billion in loans tied to Selfridges’ properties are due in August 2025.
- Recent investment moves include a 40% stake acquisition by Saudi Arabia’s Public Investment Fund.
The property portfolio of Selfridges, one of the leading department store groups, has lost significant value, with a reduction of £638.6 million from its previous £3.1 billion valuation. This downfall constitutes a 20.6% decrease, raising concerns about future financial stability amidst looming loan obligations.
This substantial devaluation affects premier assets, notably the flagship store on Oxford Street, London, along with other properties such as the store at Manchester’s Exchange Square. The property has over £1.7 billion in secured loans, which are set to mature by August 2025, adding further financial pressure on the retailer.
The Sunday Times reported about the looming loans and the property devaluation, highlighting the challenges Selfridges might face in meeting its financial commitments. These writedowns were largely attributed to external market pressures, including rising interest rates and changing market rent dynamics, according to a company spokesperson.
In a strategic move last week, Saudi Arabia’s Public Investment Fund (PIF) acquired a 40% stake in the Selfridges Group, reflecting a new chapter of international investment. This ownership change follows the 2021 sale by the Weston family to Signa Holding and Central Group in a deal valued at £4 billion.
Subsequent to Signa Holding’s financial downturn last year, which necessitated the new auction of its stake in Selfridges, Central Group injected £98.1 million into the department store to help meet previously agreed financial obligations. Both Central and PIF have made new, undisclosed investments into the Selfridges Group, which now operates under two entities: one for property holdings and another for retail operations.
The ongoing financial restructuring and international investments indicate a transformative period for Selfridges.
