'Prime' Dundee industrial estate changes hands in £6.5m deal
Edinburgh-based Lismore Real Estate Advisors has advised joint venture partners Chancerygate and JR Capital on the £6.5 million acquisition of a Dundee industrial estate from West Ranga Property Group.
The deal concerns G3 Arrol Road in Wester Gourdie Industrial Estate, with tenants including Ford and Scania, and the sale price reflected a net initial yield of 6.5 per cent.
G3 Arrol Road is described as a “prominent, multi-let” industrial estate, close to the A90 Kingsway. It has also recently been refurbished, and offers “prime” industrial and logistics space, totalling about 80,000 square feet.
Units are let to Scania, Ford and Grimme UK until 2028, 2029 and 2031 respectively, while one remains vacant. Future rental growth is anticipated due to the “strong” local market dynamics.
Lismore represented the buyer, whilst the vendor was advised by CBRE. Lismore in July in its latest quarterly review predicted more positive times for Scotland’s property investment market as deal activity gathered pace following the economic fallout from the pandemic.
It said transaction volumes in quarter two had increased by 71 per cent since the opening three months of 2021, with some £300m traded, though activity remained some 30 per cent below the five-year average.
The firm also expected the second half of the year to be more positive, with three “significant” transactions north of £50m understood to be in the pipeline.
Lismore was founded in March 2020 to provide intelligent market advice, and says its directors have collectively advised on more than 400 transactions with a value in excess of £4 billion.