An industrial property at Wester Gourdie Industrial Estate in Dundee has sold for £6.5 million.
Dundee-based West Ranga Property Group has sold G3 in Arrol Road to joint venture partners Chancerygate and JR Capital.
The building, located close to the Kingsway, is a mixture of industrial and logistics space, totalling approximately 80,000 sq ft.
Scania, Ford and Grimme UK will let units until 2028, 2029 and 2031 respectively.
Rents range from £5 to £7 per sq ft. A 41,500 sq ft unit at the property remains vacant.
West Ranga Property Group purchased the industrial building from administrators, Ernst & Young, in December 2017.
It has since undertaken extensive and comprehensive refurbishment.
Dundee an important regional market
Buyer Chancerygate is the UK’s largest multi-unit industrial developer and asset manager.
Its head of asset management, Rory Finnan, said: “These acquisitions further increase the fund’s presence in strategic locations across the UK, with the G3 industrial estate in Dundee a perfect example of this.
“It is our second acquisition in Scotland and further cements our position in an important regional market.
“Completing six acquisitions in a short space of time shows our continued commitment to the market.
“However, with £20m still available to invest, we are still looking to grow the fund’s footprint in areas where we see a strong market case to do so.”
JR Capital is a multi-family office business with a strong focus towards UK property investment and development.
Commercial property popular investment
Lismore Real Estate Advisors, who advised the purchase, anticipate future rental growth due to the strong local market dynamics.
The sale price of £6.5m reflected a net initial yield of 6.50%.
Dundee-based self-invested pension products (SIPP) adviser Curtis Banks said it is also experiencing interest in investing in commercial property as part of pension savings.
Commercial property is a popular investment due to the tax efficiency of the investment, including rent paid tax free directly to the SIPP, and no capital gains tax on disposal.