Aberdeen UK Property Fund and Seven Capital have exchanged contracts on the sale of Eastwood House in Chelmsford, Essex, for £36.8m, a net initial yield of 8.6%.
The 119,654 sq ft office building is let to BAE Systems Surface Ships until November 2021 at £3.3m per annum.
BAE no longer occupies the building and it is sublet to Aon Benfield, Royal Bank of Scotland, Anglia Ruskin University, Capita and Linden Homes.
The property, which is located within 800m of Chelmsford railway station, occupies a site of c.5.4 acres, including a large car park which has been identified as having residential development potential.
Seven Capital has done several office-to-residential conversions in and around Birmingham and the Midlands.
Aberdeen UK Property Fund was represented by Griffiths Eccles.
To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette
