Selfridges’ property value falls by more than £600m

The value of Selfridges’ property portfolio plunged by more than £600m last year, according to The Sunday Times.The Times reported that accounts for the department store’s property assets showed its £3.1bn property portfolio had been marked down by £638.6m by valuers, a fall of 20.6%.

It also reported that over £1.7bn in loans, maturing in August 2025, are secured against the group’s freehold property.

In a statement to Retail Sector, Selfridges said: “The change in valuation reflects external market factors.  In preparation for the publication of results, professional valuations of the property portfolio are undertaken.  When forming their opinion the valuers take into account a range of assumptions that are largely market-related such as inflation, yields, rental values.  It is those external factors that are mainly responsible for the decrease in valuation.”

Last week, it was reported that Saudi Arabia’s Public Investment Fund acquired a 40% stake in Selfridges after purchasing the shares previously held by collapsed Austrian firm Signa. 

Following the acquisition, Central Group will own a 60% stake in the department store, while PIF will hold 40% of both Selfridges Group’s operating and property companies.

The deal includes new investment by both Central and PIF to strengthen the group’s financial position.

It was first reported that Saudi Arabia’s PIF was considering a stake in the group earlier this year.

Reports came as the collapse of Austrian co-owner Signa left Thailand’s Central Group searching for a new partner.

Signa acquired Selfridges back in 2021 for £4bn but called in restructuring experts last November before filing for insolvency amid a cash crunch.

Signa’s collapse forced Central to lend Selfridges £98.1m this year to meet financial obligations previously agreed by the co-owners.