Selfridges investor, the Saudi Arabia Public Investment Fund (PIF), is looking to up its stake from 10% to 50% following the collapse of the department store’s co-owner Signa.
The Saudi wealth fund plans to pay just £1m for the stake as it is a creditor of Signa and this would reduce its claims against the firm by up to £52m, according to Bloomberg. Bangkok Bank, which provided loans for Selfridges’ Oxford Street site, would also waive about €733m (£618m) in claims against the company.
The Saudi PIF has been a private financial backer of Selfridges for three years, following an auction by the Weston family. It is understood to be working with advisers to undertake due diligence.
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The ownership of Selfridges has hung in the balance since Signa filed for insolvency last November, just two years after it acquired the department store with Thai conglomerate Central Group in a £4bn deal.
In the aftermath of Signa’s collapse, Central took control of the operating arm of Selfridges, however, the property division is held equally by the pari.
Meanwhile, Harrods owner, the Qatar Investment Authority, is also understood to be eyeing the department store.
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