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1.5 Billion Pounds Harrods Deal - Qatar Holdings Buys Iconic London Store

Global Arab Network - - Mohammed Almasri

Sunday, 09 May 2010 13:49

billion_pounds_Harrods_deal_-_Qatar_Holdings-1

Harrods Owner Mohamed al-Fayed has sold the iconic London department store for £1.5 billion to Qatari Holdings.

Ken Costa, who acted as an advisor to the deal, confirmed that Al-Fayed was retiring "to spend more time with his children and grandchildren."

Analysts said Al-Fayed's motivation for selling was unclear, but the price tag was not inconsiderable in a post-recessionary market.
Around 15 million people shop there each year.

The BBC reported that Al-Fayed will stay on in some capacity but will not be involved in running the company day-to-day.

The sale will include all parts of the Harrods group, including Harrods Estates and a charter aircraft service.

Qatar Holdings is the investment arm of the emirate's sovereign wealth fund, Qatar Investment Authority.

Although it failed in bid for Sainsbury's in 2007, it is the third-largest shareholder in car-maker VW and has stake in Porsche.

In a statement, Costa, chairman of asset managers Lazard International, who advised the Al-Fayed family trust on the sale, said Qatar Holding had been "specifically chosen" by Al-Fayed because he believed it had the "vision and financial capacity" to support the long-term growth of the store.

"In reaching the decision to retire, he wished 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," Costa added.

Reports last March had suggested that the GCC-based investor had approached Al-Fayed about a possible deal.

However, staff were assured at the time that the store was not for sale.

Al-Fayed's UK business interests include the Premiership football club Fulham FC and a recent rich list put his fortune at 650 million pounds.

During the 1980s, a battle for control of the store formed part of a long-running feud between Al-Fayed and the late businessman Tiny Rowland.

Rowland later accused his business rival of breaking into a safety deposit box stored at Harrods.

Al-Fayed waged a 10-year campaign in an attempt to prove that Princess Diana and his son Dodi, who died in a Paris car crash in 1997, were murdered in a conspiracy.

Despite living in Britain for decades, the multi-millionaire businessman has repeatedly been refused a UK passport.

After his first passport refusal, Al-Fayed revealed he had paid two Conservative ministers - Neil Hamilton and Tim Smith - to ask questions related to his interests in the House of Commons. Both left the government in disgrace.

"Qatar Holding (QH) will become only the fifth owner of Harrods since its creation in 1840.

Qatar Holding is a fully owned affiliate of Qatar Petroleum. It was established by an Emiri decree on 29th December of 2005, with a mandate to establish and operate intermediate and other industrial projects, individually or jointly with other partners. At the turn of the 21st Century, there was an economic and social need for intermediate industries in Qatar.

Qatar Holding was established to encourage dynamic, market-oriented , local-international partnerships and joint ventures. It now seeks to promote its experience and expertise to a broader array of audience and a vaster client base, thus actively promoting intermediate industrial projects within the State of Qatar.

Global Arab Network

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Last Updated on Thursday, 13 May 2010 07:00

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