The redevelopment of an Edwardian theatre in Southsea, Portsmouth is set to go ahead following a £3m loan from the city council.
The Kings Theatre on Albert Road will undergo an expansion which will include new bars, a restaurant and rehearsal space.
Portsmouth City Council confirmed it would lend the theatre £3m to go towards its £4.8m revamp.
The Kings Theatre Trust said it would “secure its long-term future”.
Three shops adjacent to the theatre will be demolished to make way for the development of the four-storey building.
The Tower Room on the top floor of the theatre will be made into a function space with a new rooftop bar. Another bar will also be built at the site.
The upgraded facilities are expected to bring in revenue of £250,000 per year for the theatre.
The 1,600-seat Grade II*-listed theatre was built by renowned architect Frank Matcham in 1907.
It has been managed as a voluntary charitable trust since 2003 by the Kings Theatre Trust.
Chief executive Paul Woolf said the plans would “stay true to the heritage” of the building.
“We will become a serious attraction. In the new space, we will be able to offer so much more to the community,” he said.
Portsmouth council is providing a £300,000 grant, along with its £3m loan.
The local authority, which owns the freehold on the building, will also pay £350,000 for urgent repairs.
The council’s cabinet member for culture, Steve Pitt, said the funding “supports the cultural regeneration of Portsmouth”.
News from BBC News