10 Myrekirk Road

Executive Summary

• Rare opportunity to acquire prominent industrial investment in Dundee’s premier industrial location
• The property is let to Go Karting For Fun Limited, the UK’s largest indoor karting operator
• The property is subject to a lease expiring 22 August 2038 (subject to break options) at a passing rent of £96,622 per annum (£1.91 per sqft)
• Fixed rental uplifts in 2028 to £104,839 per annum (£2.16 per sqft) and £118,616 per annum (£2.45 per sqft)
• Approximately 70% under-rented verses Open Market ERV
• Heritable Interest (Scottish equivalent of Freehold)
• Offers over £1,200,000 equating to NIY of 7.61% and low capital rate of just £24.72 per sqft

Proposal

We are instructed to seek offers over £1,200,000 (One Million Two Hundred Thousand Pounds) exclusive of VAT.

A purchase at this level would show a net initial yield of 7.61% and a capital rate of £24.74 per sqft, after allowing for standard purchasers’ costs. Reversion in 2028 to 8.25% and 9.34% in 2033.

Location

Dundee is located on the east coast of Scotland on the banks of the River Tay. It is the fourth largest city in Scotland with a resident population of approximately 155,000 people and a wider catchment of around 500,000. The city is located approximately halfway between Edinburgh, 60 miles to the south, and Aberdeen, 65 miles to the north.

Dundee has seen significant regeneration in recent years with over £1 billion having been invested on the waterfront, including the arrival of the V&A museum, adding to it’s cultural reputation. The Eden Project is scheduled to open in 2030 and will bring further employment and tourists to the city.

The city has excellent connectivity via the M90 both North and South and via the A9 amd M80 to Glasgow. Around 90% of Scotland’s population live within a 90 minute drive time of Dundee. As well as good road links, the city is on the east coast mainline providing regular rail services between Dundee and Aberdeen, Edinburgh and London.

SITUATION

The property is situated on the west side of Myrekirk Road, with immediate access on the A90 – a key arterial route. Nearby industrial occupiers include Menzies Distribution, Encon, UPS and Scania. In addition there are excellent local amenities including Asda, Aldi and Starbucks, all in the immediate vicinity.

DESCRIPTION AND SPECIFICATION

The property comprises a modern industrial unit of steel portal frame construction clad with profile metal sheeting under a double pitched metal clad roof incorporating translucent panels.

There is a canopy to the front elevation and a generous tarmac yard and customer car parking.

The property benefits from 6.71m eaves rising to 8.16m at the apex.

Internally the property has undergone extensive refurbishment of the bar, reception and WCs.

ACCOMMODATION

The subjects have been measured in accordance with the RICS Code of Measuring Practice (6^th Edition) and we estimate the areas to be as follows:

GIA 48,500 sqft (4,505.80 sqm)

TENANCY

The property is let on IRI terms to Go Karting For Fun Limited at £96,622 per annum (£1.91 per sqft) expiring on 22 August 2038. There are tenant break options on 23 August 2028 and 23 August 2033. There are fixed uplifts to £104,839 per annum from 23 August 2028 and £118,616 per annum on 23 August 2033. The lease is subject to a Schedule of Condition.

TENANT COVENANT

Go Karting For Fun Limited t/a TeamSport was founded in Guildford in 1992 and is the UK’s top indoor karting company operating 38 karting tracks. Their Dundee operation boasts a 400-metre indoor track plus Scotland’s largest indoor laser tag arena. The tenant has invested significantly in the property and has recently installed a new electric fleet of Go-Karts, underlying their commitment to the property.

For the year ending 30 June 2025, Go Karting For Fun Ltd had a turnover of £59.7 million, Pre-Tax Profit of £4.03 million and Net Assets of £12.35 million.

TENURE

The property is held on a heritable title (Scottish equivalent of English freehold).

EPC

The property has an EPC rating of C. Copy of the EPC is available on request.

VAT

The property is elected for VAT, however, it is envisaged that the transaction will be treated as a Transfer of a Going Concern (TOGC).

ANTI-MONEY LAUNDERING

To comply with the current anti-money laundering regulations, all parties of any qualifying transaction are required to undertake appropriate due diligence in advance of the transaction, including identifying and verifying all parties and establishing the source(s) and legitimacy of dunding. All parties will be required to disclose all relevant information prior to conclusion of missives to enable all parties to meet their respective obligations under the Regulations.

PROPOSAL

We are seeking offers over £1,200,000 (One Million Two Hundred Thousand Pounds) exclusive of VAT for our client’s heritable (freehold) interest subject to and with the benefit of the existing lease. A purchase at this level would show a net initial yield of 7.61% and a capital rate of £24.74 per sqft, after allowing for standard purchasers’ costs. Reversion in 2028 to 8.25% and 9.34% in 2033.