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When considering the location of any property investment, it is important to note that the Office of National Statistics (ONS) and Hamptons (part of Connells the largest property services group in the UK) are predicting growth of just 7% in London whilst they are expecting 20% growth in Scotland by 2024 [1].

The Alpina therefore offers a rare opportunity to purchase a high growth prime investment on one of the most accessible Scottish Islands. This is a seafront commercial serviced holiday apartment from plan, readily saleable on the open market, in a brand new Apart - Hotel - Restaurant - Spa Resort on the Isle of Arran (voted in 2019 as one of CNN's Top Seven Islands in the World for Day Trips [3]) from just £192,000 (or £221,996 inclusive of the Investment Lettings Management Package).

Data from the Office of National Statistics as interpreted on Statista, the Global No.1 Business Data Platform, has determined at the time of writing that inflation will peak at 7.4%, then fall to 4%, and reach a target inflation of 2% by 2026 [3]. The Bank of England expects broadly the same, predicting inflation will peak at slightly over 8% and that by 2024-2025 it will be around 2% [4]. The expected rate of inflation will offset the expected annual compound growth rate of 13.10% for hotel revenue between 2022 and 2026 according to Statista [5], but this still suggests a strong adjusted net growth of over 6% in hotel revenue after costs.

Cost inflation has been set at a compound annual growth rate (CAGR) of 10% per year to provide comfort that sufficient provision has been made for an increase in expenses. As the allowance for expenses growth is in excess of 60% over 5 years, if the rise in costs is less than this as the Bank of England [4] and Statista are suggesting [3], and the hotel revenue increases by the amount predicted by the figures from Statista [5], the yields will be even better than quoted. In addition, care has been taken to try to accurately determine prices, for example there is a substantial electricity allowance of £1,200 to £2,200 per annum depending on apartment size (for a highly efficient newly constructed apartment previously rated at circa £350-500) and cleaning is priced at £20 per hour against a minimum living wage in Scotland of £9.50 per hour and against currently advertised rates of £17 per hour.

With figures adjusted for growth and rising costs, an investment in The Alpina is expected to provide attractive Year 1 returns of at least 9.36% average, rising to an impressive 15.06% average after 5 years. These conservative figures, calculated in line with expected costs and contingency, are all available for inspection, and are backed by official occupancy rates from the Scottish Tourist Board [6], and actual available room rates in the nearest (non-seafront) spa hotel [7]

In real terms, that means an investment in The Alpina of between £221,996 and £335,996 is expected to provide a net income of between £19,043 and £34,366 respectively in the first year alone.

The Alpina represents an impressive investment providing great returns, but alternatively it may be used as a fantastic traditional seafront holiday home in Scotland where house price growth is expected to be 20% by 2024 [1]. Designed with a particular emphasis on efficiency and sustainability, it is easy to conclude what a great investment opportunity this is, whatever the reason for purchase

In summary, adding up the annual income yields calculated from occupancy rates from the Scottish Tourist Board [6], and actual available room rates in the nearest (non-seafront) spa hotel [7], shows a potential unprecedented total projected income yield of 59% after 5 years for an average apartment in The Alpina.

In addition, the apartment is sold with outright ownership of the heritable interest, effectively the Scottish equivalent of the English Freehold and means that there are no leases, or ground rents payable.

INVESTMENT Particulars

Typical 2 bedroom apartment (excluding “Investment Lettings Management Package”)

Typical 2 bedroom apartment (including “Investment Lettings Management Pack”)

"ARGYLL and the Isles has topped the list for investors and businesses planning a move, according to Rathbones."

PROJECTED YEAR 1 INCOME YIELD AFTER COSTS (Typical 2 bedroom apartment including 'Investment Lettings Management Package')

PROJECTED YEAR 2 -5 INCOME YIELD AFTER COSTS

The average returns across The Alpina development, adjusted for expected growth of 13% in revenue [5], minus a generous 10% allowance for inflationary increases on costs [4] (all calculations available upon request) are as follows:

The average nightly rates to stay in an apartment in The Alpina, the brand new Apart - Hotel - Restaurant - Spa Resort are realistically priced between £155 and £235 depending on size and amenity. The average lowest cost of a double room in the nearest (non-seafront) spa hotel is £155 and the average lowest cost of a lodge/1/2/3 bedroom apartment/retreat is £244. These prices were correct as at August 2021 for the year ahead but prices have increased since then [7].

Stayed Smart PLC a high-technology company in the hotel and serviced apartment operations sector providing total automation are the developers chosen operator.

"Housing crisis on Arran leaves hundreds of islanders without homes"

SHORT TERM LETS REGULATION SCOTLAND 2024

By law, all properties in Scotland that do not have class 7 planning permission like The Alpina does or are not exempt -so virtually every single residential property in Scotland, will require a license to operate as a short-term let from 1st July 2024 [11].

Edinburgh is the first UK City to force Airbnb hosts to apply for planning permission -no doubt paving the way for the rest of the UK and then the world [10]. The Herald reports that many landlords are already turning their back on the short term let market and opting to convert to private rentals [15], and The Arran Banner reports that short term let providers on Arran are expected to be especially hard hit [16].

It is expected by many that these laws are destined to become UK wide then worldwide, indeed The Guardian cites 23% of the houses on Arran are used for holiday/second homes [9] and it is being mooted that short-term lets are causing social problems in some cities [10]. Indeed London already restricts short-term lets to 90 days per year, Barcelona has a licensing scheme and in 2021 outright banned private room rentals [12], this type of accommodation in Northern Ireland requires certification by the Department for the Economy, the Welsh Government are consulting on this matter, and now Parliament is considering the effects in England, and published a report on short term lettings in 2022 [13].

In addition to the new licensing scheme, ministers in Scotland have already committed to consider how this type of short-term let will be taxed, which looks set to seriously reduce the very economic viability of stand alone short term lets in their current form, and in any event requiring that their existence make an appropriate contribution to local communities which in itself is likely to push many of these properties out of the market. [14]

Many perhaps more insightful investors are now taking steps to acquire future-proofed investments such as The Alpina that do not fall within such legislation due to being class 7 whilst prices are still reasonable -and concurrently divesting themselves of their residential short-term let assets before the values plummet when new regulations are brought into force around the country and world over the coming years.

The timing of The Alpina is ideal as the commercial serviced apartments in a spa-hotel setting fall outside the legislation and allow guests to self-cater with the benefit that they can also enjoy the Spa and independent Good Grilling restaurant at their leisure.

Please use the 'Enquire Now' button on the website or call 0113 347 3210 to find out how you can reserve your new apartment in The Alpina and achieve true real world verifiable income returns from 9.36% in Year 1 up to 15.06% in Year 5 supported by the official occupancy rates from the Scottish Tourist Board[6], and actual available room rates in the nearest (non-seafront) spa hotel [7].

Please note, this Investment Brief and all facts and figures within are based on the sources cited and therefore categorically do not form part of any offer or contract.

STATEMENT OF PROPERTY ADVERTISEMENT AND FINANCIAL INFORMATION: The information displayed on any website or brochure relating in any way to The Alpina merely comprises a property advertisement and is provided as a guideline only. All facts and figures within are based on the sources cited and therefore categorically do not form part of any offer or contract and are not warranted by the author or seller in any way. In no event will use of any information given verbally or in writing, or in any brochure, or on any website give rise to any contract and/or liability or provide indemnity for any loss or damage, including without limitation any loss or damage arising directly or indirectly out of or in connection with the use of the website or brochure and the information contained therein. This is an advertisement of a property with accompanying estimates of income and costs should a purchaser wish to let the property through the designated operator and is for information transparency purposes. Though the details have been determined using available comparable figures and information sources, the accuracy or completeness of the advertisement or any linked or associated information is not guaranteed as it is future projections and can change at any time by market/other forces. This advertisement does not constitute property particulars, and also is in no way an investment product, and nothing on this site is to be taken as being in any way as giving rise to any sort of regulated activity under the Financial Services and Markets Act 2000. Buyers are reminded that purchasing any property puts capital invested at risk. Property values may decline as well as increase and/or the property might not produce the expected income and/or the costs may be more than anticipated. Property is an illiquid asset and should not be viewed as a short-term investment under any circumstances. This property advertisement is provided without any warranty and buyers should satisfy themselves that information contained within is accurate and undertake their own due diligence and/or seek independent investment/financial/tax/legal/ other professional advice. This is not any sort of "guaranteed return" investment type product, and there is no requirement to sign up to any letting agreement. Buyer are purchasing a standard commercial Apartment in The Alpina offered with ownership of the heritable interest (the Scottish equivalent of the English freehold) and will therefore require a conventional solicitor registered with the Law Society of Scotland to carry out their conveyancing and confirm what is being acquired, and as is usual in a standard commercial conveyancing transaction, the offer from the seller to the buyer will represent the entire agreement between the seller and buyer