Dubai: Qatar Holding said yesterday it had bought the prestigious London department store Harrods from Egyptian tycoon Mohammad Al Fayed.
The sale transaction is "somewhere around £1.5 billion [Dh8.51 billion]", a source close to the transaction told Gulf News from London, requesting anonymity.
Credit Suisse advised Qatar Holding on the transaction.
Harrods was established in 1834 in London's East End, when founder Charles Henry Harrod set up a wholesale grocery in Stepney, with a special interest in tea. In 1849, to escape the vice of the inner city and to capitalise on trade to the Great Exhibition of 1851 in nearby Hyde Park, Harrod took over a small shop in Knightsbridge, on the site of the current store. Beginning in a single room employing two assistants and a messenger boy, Harrod's son Charles Digby Harrod built the business into a thriving retail operation selling medicines, perfumes, stationery, fruit, and vegetables. Harrods rapidly expanded, acquired the adjoining buildings, and employed 100 people by 1880.
Its expansion suffered a knock in 1883 when a fire destroyed the store. The Knightsbridge store was rebuilt with the help of architect Charles William Stephens to its current design after the fire.
The store currently occupies an 18,000-square-metre site and has over 90,000 square metres of selling space in over 330 departments. The UK's second-biggest shop, Oxford Street's Selfridges, is a little over half the size.
Official announcement
Qatar Holding said earlier in an e-mailed statement, "The Al Fayed family trust, owners of Harrods, announced that they have today sold the Harrods Group to Qatar Holding."
Although its motto is Omnia Omnibus Ubique — All Things for All People, Everywhere — Harrods sells luxury items across seven floors and 330 departments.
The store attracts 15 million customers each year.
Ahmad M. Al Sayed, Chief Executive Officer and Managing Director of Qatar Holding, commented: "It is a privilege for us to acquire Harrods, a unique company that combines an iconic luxury brand and one of the most prestigious retail properties in the world with best-in-class financial metrics. This acquisition further expands our global portfolio of world-leading companies."
Al Fayed, who also owns Fulham football club, will become honorary chairman of Harrods.
Ken Costa, chairman of Lazard International, which advised Al Fayed in the transaction, said: "After 25 years as Chairman of Harrods, Mohammad 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."
Harrods became a public company in 1889 and by the 1890s it had established a bank and estate agency.
Qatar Holding -Major investments
- In January 2008, QH took over QIA's participation in J Sainsbury PLC.
- In October 2008, QH became one of the largest shareholders in both Credit Suisse Group and Barclays PLC.
- In June 2009, QH finalised the cooperation agreement with NYSE Euronext to establish Qatar Exchange as the successor to Doha Securities Market.
- In August 2009, QH acquired voting shares in both Porsche SE and Volkswagen AG, becoming one of the largest shareholders in Volkswagen AG.n
- In October 2009, QH became the largest shareholder in Songbird Estates plc, which in turn owns Canary Wharf Group.
