Sale and Leaseback of UK Warehousing Facilities

FIH group plc, the AIM quoted international specialist services group with businesses in the Falkland Islands and UK, is pleased to announce that as part of a review of the Group's financing structure, it has exchanged contracts for the sale and leaseback of the 100,000 sq ft warehousing facilities in Leyton used by Momart, its art handling and storage business, with HEPP Mid Box Limited, a subsidiary of Hines, the global real estate manager, for a cash consideration of £22.65 million.

As part of the transaction, Momart will enter into a ten year lease of the Leyton property at an initial rent of circa £1.3 million per annum, with a review after five years. The lease includes a tenant only break option after five years as well as a tenant only option to renew the lease for a further ten years, again with a tenant only break option after five years.

£0.8m of the consideration will be deferred and will be payable once Momart has made rental payments in compliance with the lease agreement for a period of two years.

The net book value of the Leyton property at 31 July 2025 was £18.26 million and the profit on sale before transaction costs and corporation tax is anticipated to be approximately £4.4 million.

Contract completion is expected by 4 September 2025. After repayment of the mortgage secured on the property of circa £10.9 million, the sale is expected to return approximately £11.8 million to the Company, before transaction fees and corporation tax on the profit on disposal.

Subject to the successful completion of the contract, a special dividend of 70 pence per share will be proposed at the forthcoming Annual General Meeting.

Stuart Munro Chief Executive, FIH group plc, said:

"This is a positive transaction for the Group, achieving a 24% increase on the net book value of the property."