Belvoir St Theatre finished undergoing an $11.6 million redevelopment in October 2006. The redevelopment was enabled following an announcement by the then Premier Bob Carr in 2004 of a $5.5 million grant for the building project. Belvoir St Theatre has been the home of Company B since 1984 and the building had not been altered or upgraded since it was originally converted into a theatre in 1975.

Company B Artistic Director, Neil Armfield said at the time of the funding announcement: "Belvoir St remains, of course, the finest performance venue in the country - that is why Company B was formed in the first place - its unique actor/audience relationship will be beautifully preserved. However, in its current state and with the demands that Company B places on the building - more than 20 staff, over 650 performances each year, an extensive touring program and (happily!) constantly increasing audience numbers - the building fails to meet the company's needs."

The redevelopment work has included renovation of the Upstairs Theatre auditorium including more comfortable seating, provision for corporate entertaining areas, increased bar and foyer space, air conditioning throughout the building, full access for disabled patrons, improved technical and backstage facilities and new dressing rooms for both theatres.

Additionally the company purchased a warehouse on the corner of Belvoir and Elizabeth Streets to house Company B's administration offices and a large rehearsal space.

During the redevelopment, all Company B productions and other activities took place at the Seymour Centre in Chippendale.

Belvoir St Theatre reopened officially on 4 October 2006.