The Arts Club Theatre Company has won a $1.13-million grant from the federal Department of Canadian Heritage toward renovations of the Granville Island Stage.

The Vancouver-based theatre company is attempting to raise $5.6 million for capital spending and an endowment fund.

With the funding announced Friday by Indian Affairs Minister Chuck Strahl, $2.3 million has been raised.

Arts Club artistic managing director Bill Millerd said there is a need for additional rehearsal space since the Stanley Theatre opened.

The company plans to renovate its lobby and box office, increase rehearsal space, install an elevator and upgrade production equipment.

The Granville Island Stage has not been renovated since 1979.

The Arts Club Theatre Company, now in its 45th season, tours shows through B.C. and operates two Vancouver theatres — the Stanley Theatre and the Granville Island Stage — which are also used by other arts groups.