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Selfridges buyer raises 750 million euros to support luxury real estate

By Rachel Douglass

Aug 26, 2022

Business

Image: Selfridges Oxford Street, photo by Andrew Meredith. Fotografía de cortesía.

Signa Prime Selection AG, the luxury real estate arm of Signa Holding Group, has reportedly raised 750 million euros in fresh equity as its billionaire founder Rene Benko and his co-investors look to double down on the European market.

According to a statement for investors shared with Bloomberg, the firm has raised its capital by 12 percent.

The shares were subscribed by existing shareholders with German investment vehicle Kuehne Holding raising its stake from 7.5 percent to 10 percent.

It comes amid concerns over the strength of the sector and builds on a similar move by the firm earlier this year at Signa Development Selection AG, which will focus on non-luxury real-estate projects.

The news follows Signa Prime’s recent acquisition of luxury department store Selfridges in London, which Signa and a partner Capital pledged to invest in as it builds on its innovation efforts.

Despite Signa Prime reporting a strong net income, which rose to 682 million euros in 2021, Bloomberg said there were concerns that a recession could hit the German and Austrian retail market, where the majority of Benko’s properties are located.

The result has seen prices of a rare publicly-traded bond issued by Signa Development pushed into “distressed territory”, as Bloomberg data suggested.

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