BAE warehouse sold for £50m

Avison Young, acting on behalf of Aviva Investors, has secured the sale of a shed occupied by BAE Systems in Washington, Tyne and Wear to a local government pension scheme, for a sale price of £50.15m, reflecting an initial yield of 6.8%.

The 346,000 sq ft property was built in 2010 and is located at Radial 64 on a 16.5-acre site. The investment is a virtual freehold, being held on a 999-year ground lease from 2010, at a peppercorn annual rent.

BAE Systems has a 25-year lease from 2011, with a further 13 years remaining. The current passing rent is £3.685m a year and is subject to annual uplifts of 3%.

Simon Beanland, principal at Avison Young, said: “We were pleased with the outcome of this sale, following 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.”

Your Comments

Read our comments policy

Related Articles

Subscribe for free

Stay updated on the latest news and views in North East property


Keep updated on the latest news, deals, views and opportunities in North East property, in your inbox.

By subscribing, you are agreeing to Place Terms & Conditions and Privacy Policy.

"*" indicates required fields

Your Job Field*
Other regional Publications - select below