Aviva Investors has sold a 346,000 sq ft industrial unit in Washington, Tyne and Wear, for just over £50m – a 6.8% initial yield.
The asset has been bought by a local government pension scheme.
The property, which sits on a 16.5-acre site, was built in 2010 and is let to BAE Systems on a 25-year FRI lease from 2011.
The current passing rent is £3.7m per annum and is subject to annual uplifts of 3%.
The investment is a virtual freehold, being held on a 999-year ground lease from 2010 at a peppercorn annual rent.
Avison Young advised on the sale, which is expected to be one of the biggest in the North East this year.
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