AN historic city centre shop has been sold by a Yorkshire investment company for almost £1.9 million less than a year after it purchased the site for just £800,000.

The 15th century building, at 35 Stonegate, has been sold by Wetherby-based Oakgate Group Pension Fund for £1.875 million to a West Yorkshire businessman in a deal overseen by property consultants Lawrence Hannah.

Ahead of the sale, the property has already been let to fashion, jewellery and gifts retailer Oliver Bonas, which is due to start trading shortly.

Oakgate group had bought the building for £800,000 from internationally-renowned astrologer Jonathan Cainer, in November last year before carrying out a programme of renovations.

Miles Lawrence, managing director of Lawrence Hannah in Blossom Street, York, said: "This is a tremendous deal and reinforces Stonegate’s reputation as arguably Yorkshire’s most prestigious retail street.

"The building is an absolute gem, with a rich and varied history. Having bought the building the Oakgate Group then carried out a very sensitive interior and exterior refurbishment programme.

"Once 35 Stonegate was let to Oliver Bonas, at a rent of £92,500 a year on a 10-year lease, it then became a very attractive investment opportunity." Laurence Hannah oversaw the acquisition, letting and sale of the building, with the sale price representing a 4.66 per cent yield.

Mr Lawrence said: "The city of York now has another quality retailer in the city centre, while Oakgate’s investment has paid off handsomely.

"This is another deal which demonstrates the strength of the York commercial property investment market.

"The city remains an extremely attractive proposition for investors and occupiers, with its wealth of history, its superb transport links and its quality of life."

The building itself comprises three floors, with an attic. The ground floor features a glazed courtyard and the retailer intends to trade throughout the building incorporating some of the upper level room.