Campaigners are hopeful funding for the centre can be secured
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Campaigners for Northern Ireland's entry in the BBC Two's Restoration programme are hopeful it can be restored despite failing to win the competition.
The Playhouse community arts centre in Londonderry had hoped to win prize money of more than £3m to restore the building.
However, a 15th Century school in Birmingham was named the winner as the popular series culminated in a live final on Sunday.
Griff Rhys Jones announced the Old Grammar School and Saracen's Head, in Kings Norton as the winner, at Hampton Court Palace.
More than 750,000 votes were cast in a public phone poll.
The Workingmen's Institute and Memorial Hall, in Newbridge, Wales, placed second in the poll.
Third was Gayle Mill, near Hawes, North Yorkshire.
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Finalists
Knockando Wool Mill - Scotland
Archbishop's Palace - South East
Workingmen's Institute and Memorial Hall - Wales
Sherborne House - South West
Gayle Mill - North
Playhouse Arts Centre - Northern Ireland
Old Grammar School and Saracen's Head - Midlands
Bawdsey Radar Station - East
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The Playhouse had planned to include an enhanced theatre space, more rehearsal rooms, a café-bar and disabled access as well as major structural improvements in plumbing, heating, electrics and sound insulation had it won the competition.
The general manager of the Playhouse, Niall McCaughan said there was great disappointment that the centre had not featured in the top three.
"We were optimistic going, and thought we were hopefully going to win or feature in the top three," he said.
"But we feel that getting to the final was a great achievement. We had great support from across Northern Ireland and it was just disappointing that we did not bring back first prize with us."
Mr McCaughan said he was hopeful that by featuring on the programme, the centre would raise funding from elsewhere to complete the work.
"We had a great campaign, it was very much community orientated and we are optimistic that we can secure funding for it and hopefully some time in the future the building will be restored."
The Old Grammar School received more than £3m in prize money
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The Playhouse is set on one of the oldest sites in Derry.
Nestled against the city walls, it is situated in the former St Mary and St Joseph's school buildings, part of a complex originally owned by the Sisters of Mercy.
Built between 1887 and 1911, the building tells the story of the first convent to be set up in Northern Ireland after the reformation.
Schooling on the site came to an end in 1981. Eleven years later, in 1992, the playhouse was established and has grown into one of Northern Ireland's most diverse and busiest arts centre with strong community support.
Restoration 2004 had originally considered around 20,000 sites.
Sunday's live final featured reviews of all eight shortlisted buildings.
Manchester's Victoria Baths was the first Restoration winner last year.
Since then, a Restoration Project Team has been appointed and structural work on the front block and restoration of the Turkish Baths is planned for October 2005.