Canterbury City Council has been given a £2.95m cash boost by the South East Development Agency.

The agency is contributing £2m to acquire property next door to the Marlowe Theatre in order to create a larger venue and improve access, and £975,000 towards the restoration of the Canterbury Beaney and its transformation into a cultural and heritage hub.

The council’s chief executive, Colin Carmichael, said: “We are delighted with the agency’s decision, confirming their commitment to these two key projects that are so important to the city and to the regeneration of east Kent.”

The Marlowe Theatre revamp is a £25m scheme, involving the introduction of a second space for rehearsals and more intimate performances, an increase in seating and improved disability access.

Work is due to begin in January next year and be completed by December 2010.

The £11.5m Beaney project involves integrating the first floor library with the second floor museum and gallery to transform the building -– which opened in 1899 -– into a cultural centre for the city.

The scheme has already been awarded £6.5m from the Heritage Lottery Fund.

John Gilbey, leader of the council, said: “The agency’s confidence in our vision is demonstrated through these grants, giving a clear message about the validity of these two key projects in the cultural regeneration of Canterbury.

“This is an important part of the jigsaw, completing the public sector funding package for the projects.”