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Hi Umit I took a look at that listing, and it is definitely shady, I can see why you want to know why they rank. To me it looks like they are gaming the places ago fairly hard. There are numerous things that the listing is doing that are possibly against guidelines. The first is the name, "London Builders" it doesn't just have the location, but it is also a strong keyword variation. this keyword is then repeated in the description, and the url. Using the location in your name and description is against best practices, and can get you in trouble. However it is also extremely effective. While any one of these things wouldn't be enough to rank this high, all three could have that effect. Also, the onpage signals from the site are also reinforcing the ranking. Frankly, the site looks incredibly spammy. Its a default wordpress template with a couple of posts over the last couple of years that use the keywords. Unfortunately its a example of some of the big weaknesses that the Google Places has right now. This looks like a case of a black or grey hat seo trying to rank a company in Google Places without the company having a actual website.

I would definitely NOT redirect a domain that received an unnatural link penalty to a new domain that you're starting fresh on. I wouldn't host that new domain on the same C-block either. If you were running from the cops would you call them and let them know that you cut your hair, changed your clothes and got a new car?