Birmingham-based Ciel Properties has made its boldest investment to date through the £20.85 million acquisition of a mixed-use portfolio - taking its trading activities to over £65 million in the past two and a half years.

The Zenith portfolio purchased from Mountcharm includes ten fully let properties with a mix of retail, leisure and office uses, amounting to 100,694 sq ft, in predominantly town centre locations in the Home Counties and the South-east.

The majority of the properties have secured rental income for eight plus years and several have covenant strengths of local and central Government tenants.

The purchase, which includes a 24 bedroomed hotel in Salisbury, represented a net initial yield of seven per cent.

Established six years ago as a joint venture with the Royal Bank of Scotland, Ciel Properties has carved out a niche in acquiring property in provincial town centres and adding value through hands-on management.

The company's latest move - the largest single acquisition to date - is the result of a strategy of portfolio churning and improvement and replaces investment stock which has been traded on in recent months generating cash of around £20 million.

The Zenith portfolio will boost Ciel's rental income by £1.6 million.

Steve Jones, a director of Ciel Properties, said: "This timely acquisition replenishes our nationwide holdings and brings with it numerous new opportunities in the immediate and medium term to work and expand our fast growing asset base.

"With our swift access to funding from Royal Bank of Scotland we are actively seeking similar opportunities to run alongside our £15 million rolling sales and development programme."

Brought to the market by Dunlop Heyward's London office, the sale of the Zenith Portfolio attracted intense investor interest right across the sector.

Ramsdens of Henley in Arden, Warwickshire, acted for Ciel Properties in the purchase with Eversheds as legal advisors.