Saudi Arabia’s Public Investment Fund (PIF) has revealed it will establish a strategic partnership with retailer Central Group, to obtain a minority stake in the UK high-end department store chain Selfridges.
Under the terms of the agreement, PIF will hold a 40% stake in both the operating and property companies of Selfridges Group, while Central Group will retain the remaining 60%.
The announcement follows a binding agreement for the total buyout of Signa Group’s interest in Selfridges Group by PIF and is subject to customary and applicable regulatory approvals.
“This transaction allows Selfridges Group to build on its position as a premier retail destination,” said Turqi Al-Nowaiser, Deputy Governor and Head of the International Investments Division at PIF, in a statement to the Saudi Press Agency. “We are pleased to be partnering with Central Group in Selfridges Group, one of Europe’s most iconic luxury department stores.
Selfridges Group owns and operates 18 premier luxury department stores across the UK, the Netherlands and Ireland. Its flagship locations are located on London’s Oxford Street and Manchester’s Exchange Square.
The retail chain was bought by Austria’s Signa and Thai retail conglomerate Central Group in 2021 for £4 billion. Two years later, Signa filed for insolvency for two of its key divisions, including Signa Prime Selection, which co-owns properties such as the Selfridges Group. The filing was the largest insolvency case in Austria’s history and led Central Group to seek a new partner.
Saudi’s PIF has several investments in the UK, including in Aston Martin and the Newcastle United football club. The fund already owns a 10% share in the Selfridges properties, while 40% is owned by Signa and the remaining 50% by Central Group. As part of the new partnership. both PIF and Central Group have agreed to provide new funding to strengthen Selfridges Group’s position and support future development.
