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LONDON (Alliance News) - FIH Group PLC on Wednesday said it agreed to buy the freehold of a 2.5 acre industrial estate in Leyton, East London, for GBP19.4 million.
The AIM-listed investment company said the site consists of five warehouses, operated by its handling subsidiary Momart. The property was acquired from Momart's long-standing landlord H Young & Co Ltd, who marketed the property for sale in October.
FIH said it will finance the purchase of the property using part of its own cash reserves and by drawing down new secured mortgage facilities at completion.
"We are pleased to have acquired the Leyton property as this will result in significant savings of annual rent for the Group and removes the prospect of a continuing escalation in future operating costs," said Chief Executive John Foster.
"We are confident that over the medium term the purchase will generate meaningful cash savings for the group and will both enhance and improve its quality of earnings," added Foster.
FIH Group shares were trading 1.1% higher on Wednesday at 276.00 pence each.