Newtown Youth Centre, in the Newtown Nicholstown area of the city, was awarded the grant from the Neighbourhood Renewal Fund to carry out the modernisation programme.
Improvements to the facility included a new kitchen, toilets and landscaping.
It is now fully accessible to people with physical disabilities.
Live music and an Asian fashion show put on by the club's girls' and young women's group were among the attractions at the launch party.
Simon Whitmore, senior area youth worker, said: "This money has really helped to improve the youth centre. The local community is really appreciative."
Saeed Poswall, local manager of the Neighbourhood Renewal Fund, said: "The funding will directly impact on the young people who use the facility."
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