PIF make ‘seismic’ UK investment amid questions over Newcastle United commitment
The Public Investment Fund have bolstered their UK portfolio by acquiring 40 per cent of Selfridges.
PIF, the Saudi Arabian sovereign wealth fund that owns an 85 per cent stake in Newcastle United, will partner with Thai-based Central Group, whose shares will reduce to 60 per cent. An opportunity presented itself after Austrian company Signa filed for insolvency last year with debts worth around £1billion.
PIF already held a 10 per cent stake in Selfridges as they aim to diversify Saudi’s economy as part of their Vision 2030 plan. An upscale, affluent department store furthers their interest in the UK market, with Newcastle the most high-profile investment.
Other notable British acquisitions include stakes in Heathrow airport and hotel chain Rocco Forte. Turqi Al-Nowaiser, PIF’s deputy governor, said: “We are pleased to be partnering with Central Group in Selfridges Group, one of Europe's most iconic luxury department stores. This transaction allows Selfridges Group to build on its position as a premier retail destination.”
Executive chairman of Central Group, Tos Chirathivat, also welcomed PIF’s investment. He added: “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.”
Founded in 1908 by Harry Selfridge, the iconic store helped gentrify London’s west end in the early 20th century. A recent ITV drama explored Selfridge’s history, including how its founder lost most of his lavish fortune.