Tracey Investments has acquired the Kingsway Park multi-let industrial estate in Dundee for £4.22m from Dixon’s Industrial Holdings in a deal reflecting a 8.89% net initial yield.
The 97,014 sq ft and is situated on a 6.4-acre site on the edge of Dundee and counts the likes of Lyreco UK and Thrifty Car & Van Rental as tenants. The asset includes a 10,000 sq ft vacant unit which is currently undergoing refurbishment.
Dixon’s Industrial Holdings acquired Kingsway Park in 2020 and has since completed an asset management plan, which included refurbishment, rebranding and lease regearing at the park.
Dixon’s will use the funds from the sale to increase the company’s footprint in the North of England where it is actively seeking further industrial and office investment opportunities.
Chris Donabie, partner at Naylors Gavin Black, which along with Inglis Howie jointly advised Tracey Investments on the acquisition, said: “We have been monitoring this property with interest throughout its previous ownership and we are very happy to have been able to work alongside Inglis Howie in acquiring it off-market. It offers fantastic potential for Tracey Investments to further grow the income return and improve the covenant profile.”
