£50m Leith Walk plans in doubt as Edinburgh University pulls out

A CONTROVERSIAL £50m hotel and homes development plan for Leith Walk has been dealt a hammer blow after university bosses pulled the plug on their backing.

Campaigners say the decision by the University of Edinburgh is a major setback against the proposal. Earlier this month, Drum Property Group lodged an appeal with Scottish Ministers after Edinburgh City Council unanimously refused permission to demolish red sandstone buildings at Stead’s Place to make way for hundreds of student flats, a 56-bedroom hotel and 53 affordable homes.

But the university, which presented the proposals to the council alongside developers at a hearing in January, has now walked away from the application – and is no longer interested in pursuing the 471 student flats for postgraduates. Drum has now been urged to “abandon” the planning appeal.

A university spokesperson said: “The university has kept a close interest in the proposed plan for Stead’s Place and, after giving it careful consideration, has decided not to pursue that interest any further.”

Save Leith Walk demonstrators. Picture: Lisa Ferguson

Community campaigners, who have opposed the development since day one, say the university’s decision has come too late for a host of Leith Walk businesses who have been forced to shut. The remaining four businesses, Leith Depot, Cassia, the Punjabi Junction and Leith Walk Cafe are all expected to close their doors by the end of the year.

A Save Leith Walk spokesperson said: “We are surprised that the University of Edinburgh has terminated its partnership arrangement with Drum Property Group to build student accommodation in Stead’s Place, Leith Walk.

“We appreciate that the University of Edinburgh have finally acknowledged the concerns of our community.”

A Leith Walk councillor praised the university’s decision and is now calling on Drum to call-off its appeal.

Green Cllr Susan Rae said: “I really welcome this news. It’s a testament to the skill, dedication and determination of the Save Leith Walk campaign and demonstrates that the university has listened to the community and learned.

“It is time that Drum Property Group did likewise. First their proposals were rejected by the community, then by the full planning committee – now their preferred accommodation provider has pulled out. Those voices need to be listened to and respected. Save Leith Walk has earned that.”

Cllr Rae called for a “fresh start” for Stead’s Place and urged Drum: “Open the shops and sit down and talk – with grace and a bit of vision.”

The company insists it will press on on with its appeal and said talks with other university operators were taking place.

Graeme Bone, group managing director of Drum, said: “Since purchasing the Stead’s Place site in 2017, we have been delighted with the high levels of interest in the innovative student and hotel elements of our proposals from a range of potential operators, including the University of Edinburgh.

“We are close to selecting our preferred operating partner for what will be a game-changing and vibrant mixed-use development and will make a further announcement when those discussions have concluded.”