The threat of Matthews Yard being demolished is more real than ever.

Just a day after the arts hub received a 'significant win' in the form of being granted an asset of community value listing (ACV), a planning application was submitted that would see it torn down and turned it into flats, 55 to be exact.

This wasn't the news Leoni Descartes, director of Save Matthews Yard, wanted to hear.

"Another front in the battle to Save Matthews Yard has been opened up," she said.

"On the one hand, we are speaking to financial backers, more reasonable property developers, the GLA and others to try and secure loan finance and prepare a bid to buy the building for more money than has been offered, under the community right to bid.

"On the other, we have had to draw attention to the planning application for demolition and how this may blight the lives of local people and our community in the short, medium and long term."

In the planning application, it says that if approved, the current building at 5-9 Surrey Street would be demolished and replaced with a six to eight storey block.

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The ground floor area would also be used for shops.

The good news for Matthews Yard is that by securing the ACV status before the developers purchased the building, the owners can now trigger the community right to bid should the owners of the building still wish to sell.

If the owners then were to accept the bid Matthews Yard would then have four and a half months to raise the money to buy the asset.

Ms Descartes said they won't go down without a fight.

"We will be hosting public consultations and other activity to help inform people how they can go about raising formal and informal objections to proposals and are still finalising our strategies in this regard," she said.

"Even if developers are successful in securing permission to demolish the building they cannot buy the asset from Follys End Fellowship Trust without them notifying the council of their intent to sell and triggering a moratorium in which Save Matthews Yard can submit a bid."