Selfridges has experienced a significant reduction in the value of its property assets.
- The luxury retailer’s property value decreased by 20.6%, amounting to £638.6 million.
- Loans exceeding £1.7 billion are secured by Selfridges’ freehold property.
- Market factors such as interest rates and rents contributed to the decline.
- Central Group and Saudi Arabia’s PIF are involved in acquiring the Selfridges Group.
In a recent report by The Sunday Times, it was revealed that the celebrated department store chain, Selfridges, has seen a drastic decline in the value of its property portfolio, which prominently includes its flagship location on Oxford Street, London. The property holdings have reportedly reduced by a substantial £638.6 million, marking a 20.6% devaluation from its original worth of £3.1 billion.
The situation is compounded by over £1.7 billion in loans, with maturity scheduled for August 2025, which are secured against Selfridges’ freehold properties. This has raised concerns about the retailer’s financial strategies moving forward, given the looming repayment obligations.
A spokesperson for Selfridges attributed these writedowns to “external market factors,” which include prevailing interest rates and market rental values. These economic conditions have evidently placed significant pressure on property valuations, prompting a reevaluation of assets by valuers.
Additionally, corporate developments regarding the ownership of Selfridges have emerged. The Thailand-based conglomerate, Central Group, in conjunction with Saudi Arabia’s Public Investment Fund (PIF), is reportedly finalizing a complete acquisition of Signa’s share in the Selfridges Group. This development indicates strategic moves towards broader international ownership and investment.
Concurrently, leadership changes are on the horizon, as Selfridges CEO, Andrew Keith, is set to exit the company this autumn after four years of leadership. His departure is anticipated as part of the larger organizational restructuring.
The decline in Selfridges’ property value reflects broader market challenges impacting the retail sector.
