Mayfair Capital Investment Management’s Property Income Trust for Charities (Pitch) has purchased the Travelodge Hotel in Teddington for £9.4m – taking the charity fund’s assets up to nearly £150m.

Mayfair Capital has let the property on a 25-year lease with rent reviews linked to the RPIX Index (a measure of inflation in the UK, equivalent to the all-items retail price index excluding mortgage interest payments), yielding 6.5 per cent to the fund.

The 113-bedroom Teddington hotel has been created from the conversion of a former office building. Pitch now has a portfolio value of £147.48m.

Commenting on the deal, fund director James Thornton said: “The budget hotel sector is relatively buoyant at present and we have a preference for investing in greater London.  The investment offers a long lease with the prospect of inflation-linked reviews without cap or collar.”

Mayfair Capital continued its tactic of capitalising on rental growth outside central London when it purchased two properties in Kent and Stoke-on-Trent in July last year for £9.5m: a warehouse facility in Aylesford BT and a Go Outdoors retail unit in Hanley, Staffordshire.

Pitch enjoyed a prosperous first quarter in 2012, returning 1.2 per cent compared with the Association of Real Estate Fund’s (the industry association that represents the unlisted real estate funds industry in the UK and associated off-shore jurisdictions) all balanced funds index of 0.8 per cent. The first-quarter distribution payment represents a yield of over 7.5 per cent to investors buying units in the Fund at today’s offer price.