Mohammed Al Fayed has sold London department store Harrods to the Qatari royal family’s investment company for a reported £1.5bn ($2.3bn).

The Egypt-born tycoon acquired the business in Knightsbridge following a £615m takeover in 1985.

Ken Costa, an adviser to the deal with Qatar Holdings, said Mr Al Fayed was retiring “to spend more time with his children and grandchildren”.

He will continue to promote the store in the role of honorary chairman. But Mr Al Fayed will not be involved in running the company on a day-to-day basis.

“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.”

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.

The sale, signed in the early hours of 8 May, 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. Source: BBC