Businesses in the Pentire House co-working space in Newquay face an uncertain future after being told by the building’s owners that they need to vacate by the end of the year.

Pentire House is home to a community of 45 freelancers and small businesses owners such as Here Now Films, Atlas Media and Scout Studio, but have been given notice to quit with plans to transform the building from shared space to serviced offices.

One of the tenants, Here Now Films MD Ed Smit, has written an open letter to Pentire Estate director, Anthony Dann, urging him to reconsider the decision.

“I am writing to you on behalf of the many individuals and businesses that form the vibrant community within the Pentire Estate co-working space. We have recently learned of the plans to transform this shared space into serviced offices, and we wish to express our collective concerns and urge you to reconsider this decision.”

The letter continues: “As a group, we understand that it’s our privilege to use the space, not our right. This is your business, and you may do what you like with it. However, we as a community feel disappointed, let down, and angry about the decision you have made and the way in which you have approached it.”

The letter cites a number of reasons for people’s anger, including the fact that the workspace was originally established with the help of Community-Led Local Development (CLLD) funding.

“You used public money to set up Pentire House: The space was set up with grant funding to help create strong, sustainable communities in the heart of Newquay. The community is the ‘beneficiaries’ of that funding, not the shareholders or directors. Whilst it’s up to you how to manage the business, a lot of us feel that the removal of this asset from the community is in direct violation of your grant agreement.”

The letter also says there was no first refusal given to tenants, many of whom “would have willingly rented an entire floor”.

“Yet the floors have already been allocated to companies, some of which are not based in Newquay. Why did you not offer the opportunity to the existing members before offering it to separate companies?”

The Pentire House community have put forward a number of “alternative paths” for Pentire Estate to consider, including the possibility of purchasing the freehold to maintain the space as a community-driven co-working environment, which could then be managed by setting up a Community Interest Company (CIC).

Pentire Estate has been approached for comment.