The Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, has acquired a 40 percent stake in British luxury department store Selfridges and is forming a strategic partnership with Thailand-based conglomerate Central Group, which raised its majority stake in the retailer to 60 percent.

In a statement, family-owned Central Group said that under the new partnership, it would continue to be the majority stakeholder in both Selfridges Group’s operating and property companies, with PIF becoming the minority shareholder following its buyout of Austrian property developer Signa Group.

Terms of the deal were not disclosed, just that the move would strengthen Selfridges Group’s financial position and support the group’s future development.

Selfridges Group owns and operates 18 luxury department stores in three countries: Selfridges in the UK, De Bijenkorf in the Netherlands, and Brown Thomas and Arnotts in Ireland. The portfolio also includes the iconic properties at Selfridges Oxford Street in London and Selfridges on Manchester’s Exchange Square.

Tos Chirathivat, executive chairman and chief executive officer of Central Group, said: “We became the majority shareholder in Selfridges Group’s operating company in November last year. Today, 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.”

Central Group forms a new partnership with PIF in Selfridges Group

PIF added that the partnership aligns with its ongoing strategy to invest in key sectors globally and is “underpinned by a shared vision to unlock further value in Selfridges Group,” as it believes that in collaboration with Central Group, it can help accelerate the growth of Selfridges Group and cement its position as “a leading force in European luxury retail”.

Turqi Al-Nowaiser, deputy governor and head of international investments division at PIF, added: “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.”

The statement added that the new partnership is “built on the solid foundations of a shared vision, investment expertise and industry knowledge. It aims to amplify Selfridges Group’s potential, strengthening its position as one of Europe’s leading luxury retail destinations”.

Central Group began its investment in Selfridges Group in 2022 and has pushed through notable developments, including the recent makeover of the Selfridges Beauty Hall on Oxford Street into the ‘Beauty Destination of the Future’, and renovating the ground floor of Brown Thomas in Dublin and the men’s department of de Bijenkorf in Amsterdam, expanding the luxury retail space. In the past year, Selfridges Group generated sales of over 2,800 million pounds.