AFTER a week in which international leisure group Palm Holdings bought another hotel in Edinburgh we hear from two entrepreneurs who have been able to capitalise on visitor interest in Scotland to find new uses for some landmark buildings.

Name:

Andrew Craig and Andrew Rennick.

Age:

38 and 37.

What is your business called?

Stone Acre.

Where is it based?

Edinburgh.

What does it produce?

We set up Stone Acre to create spaces that we felt would stand out from the crowd in quite a saturated property development market. From working in the industry, we spotted a gap for a really bespoke service with a focus on clever design & attention to detail.

We tackle anything from complex refurbishments of listed buildings into residential or hotel use, through to new build developments.

To whom does it sell?

We typically sell our developments to investors and private home buyers.

What is its turnover?

£5 million.

How many employees?

Just the two of us!

When was it formed?

2014.

Why did you take the plunge?

We both had aspirations to run our own business and we fancied a new challenge. Together, we have around 20 years’ experience working on some of the most iconic developments across the city, such as the Advocates Close development in the Old Town. This included a 210 bed hotel with apartments, restaurants and office space.

What were you doing before you took the plunge?

We both worked for the Chris Stewart property development group in Edinburgh.

Andy R was also a professional rugby player in a former life and played back row forward for Northampton Saints and The Borders before moving in to property development.

High points of his sporting career include a number of Scotland ‘A’ caps and playing in the cup final for Northampton in a packed Twickenham, which all now seems a far cry from the world of acquisitions and planning applications!

How did you raise the start-up funding?

We used our networks to raise private equity investment alongside our own personal contribution to the business.

What was your biggest break?

We secured both of our initial projects, Distillers House and Blackfriars Lofts, around the same time. The initial acquisitions were exciting but extremely daunting. Stunning B-listed properties, we turned both into high-end serviced apartment models ready to sell on to investors.

We saw the opportunity to capitalise on the demand for apartments in Edinburgh as tourism and corporate footfall continues to grow year-on-year.

These developments allowed us to set up the company and hit the ground running. They also gave us a platform to showcase our skills and something tangible to engage with investors. We have recently sold both projects achieving yields of approximately six per cent.

What was your worst moment?

It can be really nerve wracking when you uncover a big problem and have to go back to the drawing board and constantly adapt and amend the designs as we go.

One example would be Blackfriars Lofts, set in a former church. As a listed building with a quirky layout, this was a particularly complex development. We had to work especially hard to solve the puzzle and create a feasible option for turning it into apartments that felt spacious and stylish, while retaining its original features.

Due to the layout of the building, there were old church beams crossing spaces and beautiful old windows at varying heights, so it took a lot of work to figure out how to fit in three levels of development. In some key areas we literally had millimetres to spare. It was like a big 3D puzzle to fit it all in but our architects were great and gave us confidence that we could make the development work. We’re really chuffed with the finished result.

Having a planning application declined is always deflating. As a small business, this can shift our programme and puts more pressure on securing other development opportunities.

What do you most enjoy about running the business?

Being able to rely on our intuition and gut feel through having the freedom to make our own decisions. Being such a small team, we can be nimble and have a fleet of foot approach. No two days are the same.

What do you least enjoy?

The downside definitely has to be doing all the admin.

What are your ambitions for the firm?

We are currently looking into different sectors of development such as new build residential and hotel development to meet our expansion goals. As we continue to grow, we want to ensure we stick to our values and don’t forget where we came from. No matter how much the business expands, we’re keen to ensure we stay hands-on.

What are your top priorities?

To carry out exceptionally high quality developments; to build a brand that is recognised at industry and consumer level; to expand our presence across Scotland; to deliver strong returns to our investors; last but not least, to enjoy what we do!

What could the Westminster and/or Scottish governments do that would help?

The Scottish Government could change the Land and Buildings Transaction Tax thresholds to reinvigorate the market. It would also be very beneficial to have a period of prolonged political stability, but this may be asking too much.

What was the most valuable lesson that you learned?

That collaboration and great communication is key. Building the right team and surrounding yourselves with the best people are equally important to ensuring a project runs smoothly and successfully.

How do you relax?

I relax by being as active as possible, as I find it helps take my mind of work. Be that road cycling, mountain biking, kite surfing, skiing or golf. I love travelling and recently had an extended holiday to Australia and New Zealand.

Between running Stone Acre, having three young kids and a boisterous puppy, the other Andrew probably has more difficulty finding time to relax! He likes to escape to early morning fitness sessions and winds down during family breaks away.

We also regularly take part in outdoor challenges together such as The Buccleuch Challenge and the Caledonia Etape.