Philip Green's stepson made £3m profit on property he bought from BHS (2024)

Sir Philip Green's stepson bought a store from BHS just days before the tycoon sold the company last year - and made a £3million profit a few months later.

Property developer Brett Palos is the son of Sir Philip's wife Tina, and sits on the board of the businessman's Arcadia Group, owner of brands such as Topshop.

The 41-year-old's company Thackeray Estates bought the freehold of BHS's Ealing branch in West London in March last year for £6.9million.

Only a week later, Sir Philip announced that he had sold the ailing chain to mysterious investors Retail Acquisitions for £1.

BHS has now gone into administration, threatening the future of 11,000 workers and casting doubt on the role of Sir Philip in offloading the firm so soon before its collapse.

In June, the Ealing store was sold by Thackeray to developer Southern Grove and investment firm Topland for a price of £10million - netting Mr Palos' business a profit of £3million.

Sir Philip insisted that he was not involved in the decision to sell the property to his son-in-law at a price 30 per cent below what it was worth three months later.

The bid from Southern Grove and Topland apparently came after the local council gave the green light to a nearby development.

At the time the deal came to light, a source close to Sir Philip told the Sunday Times: 'People buy and sell buildings all day long.

'Do you think we would knowingly sell something for £7million we could have sold for £10million?'

A spokesman for Thackeray Estates did not return a request for comment on the transaction today.

As well as his involvement with his stepfather's company, Mr Palos controls a number of high-value properties around London and elsewhere.

Sir Philip appears to hold his stepson in high regard - suggesting that he may be better suited to succeed in the retail world than the tycoon's own children Brandon and Chloe.

He previously said of his son and daughter that they may not have what it takes, adding: 'They're both very smart, but you've got to dedicate yourself to this stuff, it doesn't happen on its own.'

Mr Palos is the son of Tina Green from her first marriage. She married Sir Philip in 1990, when she was 41 and he was 38, and soon became integral to his business empire.

Most of the shares in his companies are owned by her rather than him - allowing the couple to take advantage of the fact that she lives in Monaco, thus reducing their tax bill without forcing Sir Philip to limit the amount of time he spends in Britain.

Mr Palos is not the only member of the family to have retained an interest in BHS property even after the sale of the firm last year.

Sir Philip is said to be the owner of the company's headquarters in Marylebone, Central London, worth an estimated £40million.

That means that if BHS is forced to leave the office building in the wake of its administration, the firm's former owner could cash in by attracting a more profitable tenant.

The Topshop tycoon is facing calls to repay £400million in dividends which he took out of BHS after he bought the company in 2000.

He is currently being investigated by the pensions regulator in a bid to make him help fill the £571million deficit in the firm's retirement scheme.

Sir Philip has also been accused of endangering BHS by selling it to Retail Acquisitions, which is headed by former racing driver and bankrupt Dominic Chappell.

Administrators who took charge of the company yesterday say they intend to sell it as a going concern, and will continue trading for the time being.

But retail experts have expressed scepticism at the likelihood of a buyer being found, saying that BHS has been doomed by the rise of online shopping and the supermarkets.