Harrods sold to Qatar Holdings for £1.5bn as Mohamed al-Fayed retires

Harrods sold to Qatar Holdings for £1.5bn as Mohamed al-Fayed retires

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 trust on 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.

source: timesonline.co.uk