LONDON: Saudi Arabia’s Public Investment Fund has made an offer that would boost its stake in Selfridges to 50%, according to documents seen by Bloomberg News, after the UK department store’s co-owner fell into insolvency.

PIF already owns a 10% share in the Selfridges properties and has offered to buy the remaining 40% stake for a cash price of £1mil (US$1.3mil) from Signa’s flagship property unit, according to an insolvency report dated July 15 filed by the division of the troubled real estate and retail empire.

The properties include sites in London’s Oxford Street and Manchester.

The Saudi wealth fund is undertaking due diligence with the help of advisers, according to the document. The other 50% of Selfridges is owned by the Thai retail conglomerate Central Group.

A representative for PIF declined to comment. A spokesperson for Signa Prime’s administrator also declined to comment on the report.

The potential deal comes as the sprawling group of companies founded by Rene Benko is slowly unwound after its key property units fell into insolvency processes at the end of 2023.

The Austrian tycoon purchased the stake in Selfridges in 2022 in one of his most ambitious acquisitions, before syndicating a portion of the 50% share to the PIF.

 - Bloomberg