Call to halt bid to turn Murrayfield sports bar into student flats over 'serious concerns' about developers

The company behind the plans is linked to a collapsed flight school, which left students out of pocket.

A local councillor has said plans to turn a Gorgie pub into student flats should be halted over concerns about the company behind the bid.

It comes after a planning application was submitted for the demolition of the Murrayfield Sports Bar and erection of a purpose-built student accommodation-led (PBSA) development, with ancillary and social amenity accommodation.

The pub, in Westfield Road in Gorgie, is a popular spot for locals to watch sports and play pool. Developers claim the redevelopment of the bar will also ‘address major anti-social behaviour in that location’.

Plans submitted to demolish sports bar to make way for student flats

But Gorgie councillor Ross Mckenzie said the plans should be halted over fears about the Directors of EH1 students (Gorgie) Ltd, who were involved in a collapsed aviation school which left students thousands of pounds out of pocket.

Scots entrepreneur Tony Banks, who appeared on the Channel 4 show Secret Millionaire after amassing his fortune through his Balhousie Care business, is one of the Directors of the EH1.

Falkland veteran Banks was the only remaining active Director of the bust Tayside Aviation school at the time of it’s collapse in April this year, with the loss of 22 jobs. Dozens of students, whose degrees were run through the Dundee Airport-based firm, were left thousands of pounds out of pocket. Debts owed by the business are estimated at £2.5 million.

Another Director of EH1, Louise Melanie Kathryn Byars, was also a Director in Tayside Aviation and ARB Aviation, the company set up by Banks for the buyout of the aviation school.

Independent councillor Ross McKenzie said:

“There are serious questions to answer about this bid and the company behind it. It's worrying that two of the three directors were involved in Tayside Aviation, which went bust with students paying money for qualifications they didn't receive. Now the company is setting up student accommodation, I think that’s clear cause for concern. Plans for student flats should be halted, until we know result of investigation into finances of the bust Aviation school.”

Administrators told the Evening News that investigations into the events leading up to the insolvency of Tayside Aviation are ongoing. Meanwhile, ARB Aviation has made legal claims against the former owners over concerns about the safe maintenance of aircraft and financial compliance. Banks pumped £2m into the school.

Councillor McKenzie added that claims by the company about the site being a hotspot for antisocial behaviour were a ‘low blow’. “The comment linking the pub with antisocial behaviour is a low blow. Some of those stories are decades old and there have been no issues in recent years. I haven't met anyone in Gorgie who wants to see another student block on Westfield Road. People have had enough, and insulting comments about antisocial behaviour will just make people more determined to resist this development."

EH1 said current owners of the pub are ‘fully on board’ with the plans and are working with the developers: A spokesperson said: “EH1 is a new student development company founded by former Balhousie Care Group founder Tony Banks. Having moved out of the care sector in 2022 Tony has now moved into the PBSA (Purpose Build Student Accommodation) sector with a view to creating high quality PBSA developments.

The intention of the organisation is to create best in class PBSA facilities in key cities across the country. EH1 are keen to work with the community of Gorgie to maximise the positive impact of this exciting new investment on Gorgie and the surrounding area.”