In a pivotal move, Cambridge Properties Holding, jointly owned by Thailand’s Central Group and Austria’s Signa, reveals in its recent UK annual accounts filing that Selfridges has sought financial assistance to meet impending debt obligations. This development coincides with the insolvency filing by Signa Prime Selection, a Signa-controlled real estate business co-owner of prestigious properties, including London’s Selfridges and Berlin’s KaDeWe.
According to the Cambridge Properties results, 2022 saw revenue hit £49 million, with a significant group profit before tax at £264.1 million and EBITDA reaching £329.2 million. The company closed the year with net assets totaling £834.1 million.
Of particular note in the report is the scrutiny of the company’s debts. With two external loans nearing maturity and financed at relatively high interest rates due to recent increases, additional funding from controlling parties is crucial to meet interest payments and adhere to covenants.
In the base case scenario presented by auditors, Cambridge Properties anticipates a need for additional funding from controlling parties to service interest on both loans. The loan held by London Oxford Street Limited is due for repayment next August, with a potential 12-month extension contingent on continued support from controlling parties.
Ongoing discussions around future financing, especially considering recent events related to Signa Holding GmbH, introduce significant uncertainty. Despite these challenges, optimism prevails for Selfridges, a global leader in the luxury retail sector.
Central Group reaffirms its commitment to Selfridges, emphasizing that this development does not alter the independent trading status of Selfridges from its shareholders. A spokesperson for Selfridges expresses gratitude for the ongoing support of Central Group.
While Central Group holds majority control post the takeover with Signa, this situation sheds light on the broader challenges faced by companies managing loans with high-interest payments in the current economic landscape.
