Pigeon has completed on the transaction to acquire Hodgson House in central Chelmsford for £2.11m.
The deal was welcomed by Pigeon director William van Cutsem, who described the office market in the city as “resilient”, adding that the acquisition is likely to return a yield of 13% on the investment.
“In the eastern region, Chelmsford is second only to Cambridge in terms of tenant demand. It’s recently awarded city status, value for money and excellent communications links make it a much favoured location for businesses as a regional or national base,” he said.
“We are confident in the office market fundamentals of Chelmsford, and believe that the property, its prominence, accommodation, parking facilities and, most importantly, its pricing would prove attractive to an undersupplied market.”
The property, which is currently let to KMPG, which sub-lets to national house builder and contractor Galliford Try, is in the city’s Rainsford Road. It was built in 1990 and provides grade A office space over four floors with good parking provision.