Global asset manager Aviva Investors has divested a prime industrial property in Tyne and Wear, the UK's North East, to a local government pension scheme.
The sale price of £50.1 mln (€57.9 mln) reflects an initial yield of 6.8%.
Built in 2010 and located at Radial 64 in Washington, the property extends to around 32,144 m2 in a 6.7-hectare site, comprising industrial, office, and ancillary staff facilities.
The investment is a virtual freehold, being held on a 999-year ground lease from 2010.
The building is let to engineering company BAE Systems on a 25-year full repairing and insuring lease from 2011, with another 13 years remaining. The current rent is £3.7 mln (€4.3 mln) per year and is subject to annual hikes of 3%.
Simon Beanland, principal at Avison Young, said: ‘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.’
Property consultancy Avison Young acted on behalf of Aviva Investors in securing the sale.
