Edinburgh property investment company SRA Ventures sees major Airbnb opportunity for the capital
Tuesday 17th May 2016
An Edinburgh-based property investment specialist believes that the city can capitalise on the Airbnb phenomenon in a big way by exploiting a significant gap in the commercial property market.
SRA Ventures Group has witnessed the amazing growth of Airbnb – which allows people to list, find, and rent flexible accommodation – and insists that its global success across 191 countries can be replicated in the Scottish capital.
SRA owner and founder Shaf Rasul says that by identifying a similar market opportunity and resolving it through the use of evolving technology, there are vast opportunities if marketed in the correct way.
He points to the significant numbers of tourists and day trippers that are attracted annually to the three week Edinburgh Fringe Festival– a major opportunity for Scottish property agents who wish to invest in Airbnb on a commercial scale and take advantage of tax allowances outlined by Chancellor George Osborne in the last Budget.
However, the availability of blocks of residential properties in Edinburgh is scarce, while the practicality of such a venture for management purposes is problematic.
Shastra Property & Development, a SRA Ventures Group company, believe they have overcome this hurdle with turnkey properties that are an ideal fit for an Airbnb entrepreneur. As owners of a £12m+ residential portfolio in the capital, they have brought to market two investments to capitalise on the demand from Airbnb host investors.
Both are located in Hawkhill Close, with the first property comprising 17 apartments in one block. The second investment comprises six apartments, all adjacent to each other in the same development.
Mr Rasul said: “These two investment opportunities are both tailored to the Airbnb entrepreneur. It’s clearly a lucrative market and by offering a turnkey solution we feel that we will achieve a premium over valuation for these assets.”
Built in 2007, Hawkhill Close is located minutes away from Edinburgh city centre and offers a selection of one, two and three-bedroomed apartments alongside luxury penthouses, extensive landscaped open space and panoramic views.
Graeme Miller, of property agents Graham and Sibbald, said: “This is the perfect investment for anyone looking for a flagship residential investment in Edinburgh and who wants to capitalise on the burgeoning Airbnb market.
“The block is currently let on a short assured tenancy basis and generates a yield of 5.8 per cent. If managed for Airbnb purposes, we think that it would easily achieve a double digit return for an investor.”
SRA Ventures is part of the E-net Group of companies which has evolved over the past two decades. Historic interests include IT and technology distribution, brand management, retail, e-commerce, and significant shareholdings within major UK Plcs and privately-owned businesses.
SRA Ventures currently owns and manages a substantial Scottish commercial portfolio which includes industrial, retail and mixed use assets.