Al-Fayed sells London icon store, Harrods to another Arab family for £1.5bn | African News - Nigeria News - African Politics
Twitter
Mohammed al Fayed
Harrods, the world famous department store, has been sold for more than £1.5bn to the Qatari royal family, Times Online can confirm.
Mohamed al-Fayed, the Egyptian owner of the London landmark, has decided to retire and will hand over the reins to Qatar Holding.
The firm was chosen because they would “maintain the traditions of Harrods”, said Ken Costa, chairman of Lazard International – the investment bank advising the family entrusted with the deal.
Fayed received advances from Gulf-based suitors in the last two months, but initially offered them “two fingers” in a vehement refusal.
“People approach us from Kuwait, Saudi Arabia, Qatar. Fair enough, but I put two fingers up to them all,” Fayed said last month.
“It is not for sale. This is not Marks & Spencer or Sainsbury. It is a special place that gives people pleasure. There is only one Mecca.”
But today Costa confirmed that the owner of Fulham football club has changed his mind.
“After 25 years as chairman of Harrods, Mohamed al-Fayed has decided to retire and to spend more time with his children and grandchildren,” Costa said.
Costa said Fayed’s family trust agreed to sell because Qatar Holding had “both the vision and financial capacity” to support the long-term growth of Harrods.
Fayed “wished to ensure that the legacy and traditions that he has built up in Harrods would be continued”, he added.
The Egyptian has invested around £400m in the Knightsbridge icon to restore it to its former glory, including £75m for an Egyptian-themed escalator flanked by sphinxes.
Qatar Holding, which handles investments for the Middle Eastern state’s royals, will become only the fifth owner of Harrods since its creation in 1840.
The store has  been owned by the Egyptian tycoon since 1985’, is thought to have changed hands in a secret deal with Gulf-based investment group Qatar Holding, which is owned by the Qatari royal family.
Sources speaking to  Sky News said the department store had sold for £1.5 billion.
It comes after it emerged that Mr al Fayed had received an unsolicited approach for Harrods in March.
At the time Mr al Fayed, who also owns Fulham Football Club, tried to reassure staff that the store in London’s Knightsbridge area was not for sale.
Harrods, which is one of the world’s most famous stores and extends over seven floors, sees more than 15 million customers pass through its doors each year.
Harrods was bought by Fayed in 1985 for £615 million. The retailer has been regularly linked to takeover  speculation .
In 2002 John Ritblat, then-chairman of British Land, offered to buy Harrods from Mr Fayed and lease it back to him.
However the offer was rejected by Mr Fayed, who told Ritblat – who was knighted in 2006 – that the store was not for sale.
In 2003, it was suggested that Mr Fayed wanted to put the store on the market.
It was linked to Harvey Nichols’ owner Dickson Poon and investment bank Lazards, which was reported to be working on a deal to merge Harrods with Selfridges, the rival department store.
A spokesman for Harrods was not immediately available to comment on the reports that the store had now been sold, but a statement is expected to be made on Saturday confirming the deal.
Ken Costa, the chairman of Lazard International, the investment bank advising the deal, confirmed the sale to Sky News.
In a statement he said: “After 25 years as chairman of Harrods, Mohamed al Fayed has decided to retire and to spend more time with his children and grandchildren.
“He has built Harrods into a unique luxury brand with worldwide recognition.
“In reaching the decision to retire, he wishes to ensure that the legacy and traditions that he has built up in Harrods would be continued, and that the team that he has built up would be encouraged to develop the foundations that he has laid.
“Qatar Holding (QH) will become only the fifth owner of Harrods since its creation, in 1840.
“Qatar Holding was specifically chosen by the Trust as they had both the vision and financial capacity to support the long-term successful growth of Harrods.
“Of paramount importance to Mohamed al Fayed was to ensure that the Harrods staff would find in QH an owner who would be supportive of their efforts to maintain the traditions of Harrods.”
Sources: Telegraph /Times