The value of Selfridges’ property holdings, including its Oxford Street store, saw a dramatic decline.
- A 20.6% reduction valued at £638.6 million was reported in The Sunday Times.
- A significant portion of the company’s loans, maturing in 2025, are secured against these assets.
- External market factors, such as interest rates, were cited as reasons for the devaluation.
- Central Group, in partnership with Saudi Arabia’s PIF, shows interest in the retailer amidst these challenges.
The renowned department store chain, Selfridges, has experienced a notable decrease in the value of its property portfolio, including its flagship Oxford Street store in London. According to The Sunday Times, the luxury retailer’s accounts revealed that valuers have reduced the group’s property assets by £638.6 million, equating to a 20.6% markdown. This significant reduction highlights the prevailing challenges in the current property market.
The financial stability of Selfridges is further under scrutiny as over £1.7 billion in loans are secured against its freehold properties. These loans are set to mature by August 2025, adding urgency to the retailer’s financial strategy. A spokesperson from Selfridges attributed these writedowns to several ‘external market factors’ such as fluctuating interest rates and the current trends in market rents.
Additionally, the strategic direction of Selfridges is likely to undergo changes, following reports from 8 October that indicate a partnership between Thailand’s Central Group and Saudi Arabia’s Public Investment Fund (PIF). The collaboration follows PIF’s agreement to fully acquire Signa’s interest in the Selfridges Group. This development comes amidst broader transformation within the company, including the anticipated departure of CEO Andrew Keith after a four-year tenure.
The unfolding changes in Selfridges’ ownership and management structure could potentially influence its recovery strategies. The market has taken keen interest in how these shifts will affect the retailer’s future operations and asset management.
The decline in Selfridges’ property value amid market challenges underscores the evolving dynamics within the luxury retail sector.
