Work is set to get underway on the two-phase restoration of Bishopsgate Institute, one of London's most iconic cultural venues, after it received a £1.5m grant from the Heritage Lottery Fund (HLF).

The first stage of the scheme includes the transformation of the institute's lower ground floor to provide a refurbished studio space, a new library learning space and an archive store, as well as the installation of toilets, changing rooms and a new lift. Phase One is expected to be completed by Spring 2010 before work starts on the second stage in summer 2010, which will include the refurbishment of the Great Hall and the creation of a new café on Brushfield Street. Phase Two is scheduled for completion in mid-2011.

It is hoped that Bishopsgate Institute, which first opened in 1895 to provide a learning space for thousands of Londoners, will offer an enhanced meeting place and educational facility for the local community following the revamp. Wesley Kerr, chair of HLF's London committee, said: "At HLF we are committed to supporting projects just like this one, that not only preserve the fabric of important heritage, but also offer the skills and learning opportunities to all."

Andrew Fuller, chief executive at the institute, added: "The Institute has been at the heart of the cultural, educational and community life of Spitalfields and the eastern part of the City since 1895. This grant from the Heritage Lottery Fund will ensure that we can continue to fulfil that role even more effectively in the 21st century."