Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Thai investor Central Group has struck a deal with Saudi Arabia’s Public Investment Fund to own jointly the company behind upmarket London department store Selfridges, after its partnership with property mogul René Benko unravelled.
Central Group, owned by the Chirathivat family, said on Monday evening that it would now own 60 per cent of Selfridges Group’s operating and property companies, with the PIF owning the remainder. The operation also includes prime department stores De Bijenkorf in the Netherlands and the Brown Thomas and Arnotts brands in Ireland,
Central in November took control of the retail business as Benko’s Signa property empire ran into financial difficulties and subsequently collapsed. At the time, the Thai investor declined to comment on the size of its own stake or whether anyone might replace Signa as co-owner.
The PIF has now bought Signa’s interest in Selfridges Group, subject to regulatory approvals. The fund already had a stake of about 10 per cent, according to a person with knowledge of the shareholding structure.
Central and the PIF on Monday said they intended to make the group “a leading force in European luxury retail”.
Tos Chirathivat, Central executive chair and chief executive officer, said the agreement would “immensely strengthen” the financial position of the group as it pursues “a new chapter of development and growth”.
Turqi Al-Nowaiser, deputy governor and head of international investments at the PIF, said the transaction “allows Selfridges Group to build on its position as a premier retail destination”.
Luxury property group Signa collapsed at the end of 2023, leaving billions owed to shareholders and creditors across Europe.
Founded by Benko in 2000, Signa grew into one of central Europe’s most prominent property investors. Benko’s relationship with Central began when he sold it a stake in Berlin’s flagship luxury department store KaDeWe in 2015.
Rising interest rates, falling commercial property values and a downturn in the luxury market combined to form a perfect storm for the sprawling Austrian property empire.
