Saudi Arabia’s Public Investment Fund (PIF) has made an offer to increase its stake in Selfridges to 50 per cent. This offer follows the insolvency of the UK department store’s co-owner.
PIF, which already holds a 10 per cent share in Selfridges properties, has offered to purchase an additional 40 per cent stake for £ 1 million from Signa’s flagship property unit. This information comes from an insolvency report filed by the division of the troubled real estate and retail empire dated 15th July. The properties include prime locations on London’s Oxford Street and in Manchester.
According to the document, the Saudi wealth fund is currently conducting due diligence with the help of advisers. The remaining 50 per cent of Selfridges is owned by the Thai retail conglomerate Central Group.
This potential deal emerges as the extensive group of companies founded by Rene Benko is slowly unwound, following the insolvency of its key property units at the end of 2023. The Austrian tycoon had acquired the stake in Selfridges in 2022 in one of his most ambitious acquisitions, later syndicating a portion of the 50 per cent share to PIF.
As part of the deal, PIF, a creditor to Signa, would reduce its claims against the group by up to £52 million, according to the document. Additionally, Bangkok Bank, which provided the senior loan for Selfridges’ Oxford Street site, would waive certain claims against Signa Prime amounting to about € 733 million.
Previously, Signa had joint ownership of Selfridges’ operating business, which has now been taken over by Central Group.
