THE Heritage Lottery Fund will today announce a £3 million grant to bring Margate's much-loved Dreamland fun park back to life.

The money will be used alongside government cash totalling £3.7 million and Thanet council's £4 million to create the world's first amusement park of historic rides with classic sideshows.

Nick Laister, chairman of The Dreamland Trust, said: "The Dreamland Trust is delighted that the Heritage Lottery Fund has awarded our project a substantial grant.

"This puts in place all the funding we now need to enable us to reopen Dreamland Margate and, at the same time, secure the future of its three remarkable listed structures, the Scenic Railway roller coaster, Dreamland Cinema and 'Lord' George Sanger's Menagerie cages. These will form the centrepieces of the world's first amusement park of thrilling historic rides, which will open at Dreamland in summer 2013.

"On behalf of The Dreamland Trust, I would like to thank our partners, Thanet District Council, our consultants and, most of all, our supporters for sticking with us for so many years. Hold tight – we're nearly there."

The revival of Dreamland is expected to bring 350,000 visitors a year.

Stuart McLeod, head of the HLF for the South East, said: "This project has huge potential to entertain, intrigue and delight. As Margate's answer to an early Disneyland, the Heritage Lottery Fund is delighted to award this substantial investment to Dreamland and, once restored to its former glory, it will not only bring alive the historic rides of yesteryear but boost tourism, too."

The site is now subject of a Compulsory Purchase Order (CPO) being made by Thanet council.

It is being opposed by the park's owners and a hearing led by a planning inspector is due to be held in January. Leader of Thanet council Bob Bayford said: "We're delighted with this news, especially as it completes the funding needed for the first stage of the project.

"Dreamland is a key site for Margate's regeneration and that's why the council has been working with the Dreamland Trust to bring it back into use. This year is turning out to be a major milestone for Margate's regeneration, with the opening of Turner Contemporary and the hundreds of thousands of visitors it has brought to the town, the Queen's visit and now this announcement from the Heritage Lottery Fund."

The HLF funding will be released once the CPO on the site has been confirmed and will allow for completion of Stage 1 of the first phase of the project involving the restoration of the Grade II* listed Scenic Railway to full working condition.

This will include a new Scenic Railway station to replace the original one destroyed in an arson attack in 2008, restoration of the historic rides collection and Grade II listed menagerie cages, repairs to the Grade II* listed Dreamland Cinema and reopening of the main park.

The second phase of the project is the full restoration of the cinema building, which is subject to funding.