IRR even cash flows

I had this Q in an interview:

Exit Cap rate = 5%
purchase price = £100M
Cash flow/year = £5M
Horizon = 5 years

What is the IRR?

I calculated this using my calculator by finding the MOIC and then an approximation formulae to get the IRR.

However, interviewer wanted an intuitive method to get the answer. Could someone help?
(Ans is approx. 5%)

 

I don’t work in real estate (the RE stands for renewable energy) but wouldn’t this intuitively mean 5%?

If you are divesting at a cap rate / discount rate of 5%, and your annual cash yield is 5%, then you are divesting to a buyer who has the same discount rate / cost of capital as you do. This means that, assuming the property produces this 5m of cash flows (pre inflation) in perpetuity, your IRR on the investment + exit is 5%.

 

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