Avison Young, acting on behalf of Aviva Investors has secured the sale of a long income prime industrial property investment in Washington, Tyne and Wear to a Local Government Pension Scheme, for a sale price of £50.15 million reflecting an initial yield of 6.8%.
The property built in 2010 is occupied by BAE Systems which is located at Radial 64, Washington, Tyne and Wear, extends to circa 346,000 sq ft. on a 16.5acre site, comprising industrial, office and ancillary staff facilities. The investment is a virtual freehold, being held on a 999year ground lease from 2010, at a peppercorn annual rent.
The building is let to BAE Systems PLC, an undoubted covenant, on a 25year full repairing and insuring lease from 2011, with a further 13 years remaining. The current passing rent is £3.685m per annum and is subject to annual uplifts of 3%.
Simon Beanland, Principal, Avison Young comments. “We were pleased with the outcome of this sale, following upon a best bids process. The property has made an excellent return for the client over the last 12 years. Timing-wise the disposal is in keeping with the fund’s strategy to sell out of relatively shorter let assets.”
