PIF buy 40% stake in Selfridges as Newcastle United owners expand portfiolo

The Saudi Public Investment Fund (PIF) is to take a major stake in Selfridges

Saudi Arabia's sovereign wealth fund, the Saudi Public Investment Fund (PIF), has agreed to acquire a significant stake in department store chain Selfridges. The PIF will partner with the current co-owners, the Thai-based Central Group, to take control of the retailer.

This development follows the collapse into insolvency last year of Austrian real estate conglomerate Signa, which had co-owned Selfridges with Central. The PIF will now hold a 40% stake in Selfridges, while Central will own the remaining 60%.

Last year, Central converted a loan into equity to gain majority control of Selfridges and has now purchased the remaining Signa-owned stake for an undisclosed sum, alongside the PIF. This comes three years after Central and Signa acquired Selfridges for £4 billion.

Founded by Harry Gordon Selfridge in 1908, the retailer operates four UK stores – two in Manchester, one in Birmingham, and its flagship site on London’s Oxford Street – as well as 14 other shops including Arnotts and Brown Thomas in Ireland. The owners have stated that the deal will also involve new investment from the PIF and Central to bolster the retail firm's position and future growth.

In addition to this, Saudi Arabia's PIF is the majority owner of Newcastle United and holds stakes in Heathrow Airport and London-based hotel group Rocco Forte.

Turqi Al-Nowaiser, Deputy Governor and Head of International Investments Division at PIF, expressed his satisfaction with the partnership with Central Group in Selfridges Group, stating: "We are pleased to be partnering with Central Group in Selfridges Group, one of Europe’s most iconic luxury department stores. " He added that "This transaction allows Selfridges Group to build on its position as a premier retail destination."

Tos Chirathivat, Executive Chairman and Chief Executive Officer of Central Group, also welcomed the new partnership with PIF. He said: "We are glad to welcome our new partner PIF, and together we will immensely strengthen the Selfridges Group’s financial position.

"The group is ready to embark on a new chapter of development and growth supported by the shared long-term vision of its shareholders.

"PIF is Central’s partner of choice in this distinguished company, and we are confident that PIF’s proven global track record of investments combined with our luxury retail industry expertise, brand management skills and innovative approach, will allow Selfridges Group to continue to flourish for the benefit of all its stakeholders."