Qatar Holding is to pay US$616 million for a cornerstone stake in department store operator Lifestyle International Holdings.

Qatar Holding is the parent of London-based Harrods Group and also holds a 12.6 per cent share of jeweller Tiffany & Co.

This week’s deal gives it 19.9 per cent of Lifestyle, parent of the Sogo department store in Hong Kong’s Causeway Bay, and four mainland department stores bearing the Jiuguang brand.

“This investment in Lifestyle International Holdings is a continuation of QIA’s investment plan to diversify its global portfolio; this time in Asia,” said Qatar Investment Authority, Qatar Holding’s parent, in a statement.

The stock was acquired from a company co-owned by Hong Kong jewellery group Chow Tai Fook and Hong Kong businessman Thomas Lau.