Saudi Arabia’s Public Investment Fund (PIF) has agreed to acquire a 40% share in the business that controls Brown Thomas and Arnotts, two popular Dublin department stores. The PIF disclosed in a communique that it had reached an agreement with Central Group from Thailand for a joint proprietorship of the Selfridges Group, which is the parent organisation of the said Dublin-based retail stores, including Selfridges in London. The group, in total, holds and directs 18 department stores across the UK, Ireland, and the Netherlands.
This agreement arrives after the dissolution of Central Group’s affiliation with the Austrian entrepreneur, René Benko, the previous year. Central Group procured Mr Benko’s share in November when his Signa Group was impelled into organisational restructuring, before its ultimate downfall. Therefore, in the short run, this agreement puts a stop to any instability surrounding the business in the wake of Mr Benko’s empire’s collapse.
An official statement from a spokeswoman for Brown Thomas Arnotts validated that the PIF of Saudi Arabia will procure a minority holding in Selfridges Group, in conjunction with Central Group, the major shareholder, illustrating their belief in the corporation as it progresses with its worldwide expansion.
The PIF has developed into one of the most prominent global investors in contemporary years, financing everything from the LIV golf tour to Riyadh Air. This investment deal signifies one of its inaugural major investments directly associated with Ireland. The PIF is recognised as one of the largest sovereign wealth funds internationally, managing around $925 billion (approximately €843.3 billion) in assets according to the information on its official website.
This agreement follows a financially fruitful year for Brown Thomas Arnotts, where the revenues increased by 6% to hit a historical high of €337.3 million last year. However, non-cash finance and tax fees tied to a sale-and-leaseback property transaction have led to the business operating in the red.
The latest financial statements for Brown Thomas Arnotts Ltd demonstrate an operational profit of €7.6 million for the fiscal year ending on February 3, 2024, which is an increase from the €6.3 million recorded the previous year.
The partnership between PIF and Selfridges Group will result in PIF owning a 40% stake in the operating and property companies of Selfridges Group. Central Group will hold the majority stake of 60%. This agreement also includes further investments from PIF and Central to bolster Selfridges Group’s standing and promote its future progression, as stated by PIF.
This collaboration is in line with PIF’s aim to invest globally in crucial strategic sectors, and is supported by a shared goal to tap into additional value in Selfridges Group. By merging PIF’s investment expertise with Central Group’s industry leadership, this partnership is set to boost Selfridges Group’s growth and solidify its role as a prominent player in the luxury retail sector in Europe, PIF continued.