Mayfair Capital Investment Management has sold the freehold to a shop in Cheltenham to a private investor for £1.81m.
The fund manager’s MC Special Opportunities Fund achieved a 42.4% return before costs in just 10 months on the sale of the Gloucestershire property located at 27 Promenade.
The fund bought the then-vacant property in February this year for £1.27m and refurbished it before letting it to Radley Retail on a 10-year lease rising from £85,000 pa to £105,000 pa over the first five years of the term.
Mayfair Capital fund director James Thornton, said: “This is a good example of an added value transaction. Cheltenham is a strong retail centre with a low vacancy ratio.
“Purchasing a vacant property obviously carries with it additional risk but we felt confident that working with a strong local team we could deliver a good outcome from the acquisition.
“In addition to Radley Retail, there were other retailers from good quality tenants very interested in this strong location. This style of transaction is one we would wish to repeat for the fund.”
Nicolas J Upton and Partners advised the fund; Downing Bentley was the letting agent; Harris Lamb and Keneth Peters acted for the purchaser.
bridget.o’connell@estatesgazette.com
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