The Courier & Advertiser (Fife Edition)
Industrial property changes owners after £6.5m switch is made
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 80,000sq 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 41,500sq ft unit at the property remains vacant.
West Ranga Property Group purchased the industrial building from administrators Ernst & Young in December 2017.
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 multifamily office business with a strong focus towards UK property investment and development.
Lismore Real Estate Advisors, who advised the purchase, anticipate future rental growth due to the strong local market.
The sale price of £6.5m reflected a net initial yield of 6.50%.
Dundee-based selfinvested 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.
Six acquisitions in a short time shows our commitment