(CNN) -- Qatari Sheikh Joann Al Thani has broken the world record paid for a yearling filly by splashing out $8.38 million for a daughter of 2001 Epsom Derby winner Galileo at the Tattersalls bloodstock auction in Newmarket, eastern England.
Galileo also sired the unbeaten Frankel, who retired last year as the world's highest rated racehorse after 14 straight wins.
The mare, Alluring Park, is a half-sister of the 2008 Epsom Derby winner New Approach.
Sheikh Al Thani, the son of a former emir of Qatar, won Europe's most prestigious race, the Prix de l'Arc de Triomphe, Sunday with the filly Treve and will be hoping his new purchase can achieve similar success.
Nicolas de Watrigant, the agent who bought the filly on the Sheikh's behalf, spelled out the reasons for the record breaking purchase, the most paid at auction in Europe for a horse of any age.
"She is a magnificent specimen," he said. "We bought her sister last year and we think she could be special.
"We didn't want to miss this one -- let's hope she is the next Treve."
Bidding on the filly, a sister of 2012 Epsom Oaks winner Was, was brisk with Irish owner John Magnier competing strongly for the purchase.
"We didn't expect to pay that sort of price, but Al Shaqab Racing (Ali Thani's operation) was keen to invest, said de Watrigant.
Treve is trained by Criquette Head-Maarek but the record breaking filly will be sent to French rival Andre Fabre for race preparation.
Trading at the famous Tattersalls October auction has been brisk all week and on the opening day Magnier purchased another Galileo sired offspring, a colt, for $6 million, briefly a European record for a yearling.
The prices paid fall well short of the record for a Thoroughbred horse, the $16 million paid for a two-year-old colt called Green Monkey at an auction in United States in 2006.
The horse, a descendant of the famous sire Northern Dancer, suffered injuries and his racing career was limited to three starts without a victory.