British conglomerate FIH Group has exchanged contracts to buy the freehold of a 2.5-acre industrial estate in Leyton, E1, from H Young and Co.
FIH said it swapped its 100,000 sq ft leasehold interest for a freehold for the security of tenure offered by ownership of the land and its specialist buildings.
The site, bought for £19.4m, comprises five warehouses operated by Momart, the group’s art logistics subsidiary. The rent for the former leasehold was £800,000 per year.
The sheds are located five miles north of Canary Wharf.
H Young & Co put the site up for sale in October.
FIH, which is listed on AIM, owns the Falklands Islands Company, a goods and businesses group, as well as passenger ferry service Portsmouth Harbour Ferry Co.
John Foster, chief executive of FIH, said: “This will result in significant savings of annual rent for the group and removes the prospect of a continuing escalation in future operating costs.
“By acquiring the land we have also provided Momart with long-term security of tenure and removed the risk of future disruption to the business at the expiry of the former leases.
“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.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
