What: The property value of Selfridges has decreased by over GBP 600 million, with loans maturing soon, amid recent changes in ownership stakes.

Why it is important: This substantial devaluation and looming loan maturities highlight the financial challenges facing Selfridges, impacting its strategic decisions and ownership structure, particularly following the investment by Saudi Arabia's Public Investment Fund.

The value of Selfridges' property portfolio has been reduced by GBP 638.6 million, marking a 20.6% drop from its previous valuation of GBP 3.1 billion. This devaluation affects key assets such as the Oxford Street flagship store in London and the Manchester Exchange Square location. The decline is attributed to external market factors, including rising interest rates and market rent conditions. Over GBP 1.7 billion in loans are secured against these properties, with maturity set for August 2025. Recently, Saudi Arabia's Public Investment Fund acquired a 40% stake in the Selfridges Group, which includes stores like De Bijenkorf and Brown Thomas. This acquisition follows the financial instability and subsequent collapse of Signa Holding, a previous co-owner alongside Central Group. In response to financial obligations, Central Group lent Selfridges GBP 98.1 million earlier this year. The Selfridges Group's structure is divided into two entities: one for property assets and another for operating business, with accounts for the latter yet to be filed.

Selfridges faces significant property devaluation amid financial restructuring