// Selfridges’s new Thai and Austrian owners have racked up over £1.7bn of debt in a higher-risk strategy
// The London branch of Bangkok Bank provided a loan of £1.7bn that is secured against the freehold of the retailer’s London flagship
Selfridges’ owners have laden the luxury department store up with more than £1.7bn of debt in a higher-risk strategy that could boost investment returns significantly.
The Telegraph reports that its Thai and Austrian owners, Tiang Chirathivat and René Benko booked loans through various new trading and property entities after they took control of the 114-year Oxford Street landmark last autumn, according to company filings.
The London branch of Bangkok Bank provided a loan of £1.7bn that is secured against the freehold of Selfridges’ flagship London store.
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Selfridges said the loan was provided to “release capital” for the acquisition, but that this did not amount to the payment of a dividend to its new owners.
Another large loan – the size which has been redacted in corporate filings – has been provided by Swiss lender EFG Bank and secured against Selfridges’ Exchange Square location in Manchester.
Selfridges former owners the Canadian Weston family sold the luxury retailer to Thailand’s Central Group in a deal claimed to be worth £4bn last year, beating out rivals including the Qatar Investment Authority.
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