Cardiff’s New Theatre is set to be taken over by an independent operator as part of a bid to save the council money.
The new tenant, who has not yet been named, was approved by current operator Cardiff Council during a meeting on October 10.
Further details about the operator will be announced once the contract is finalised.
Seven proposals were considered for the operation of the 1,144 capacity theatre.
The winning bid was for a 25-year lease of the venue, with the council set to receive rent of £6.75 million over this period. The council will not be required to pay any subsidy to the new operator.
Currently, the council pays about £500,000 a year towards the operation of the theatre.
Other terms of the bid included a commitment to invest £2.7 million in the building over the term of the lease, including a refresh of the front-of-house areas and a commitment to grow the programme from 335 performances in the first year to 359 by year three.
As part of the deal, existing staff will be retained.
Peter Bradbury, cabinet member for culture and leisure, said: “The New Theatre is one of Cardiff’s most important cultural assets, but for many years now it has cost the council around £500,000 a year to keep the doors open.
“We knew we had to change the way the theatre was run to safeguard its future. We’ve been exploring the potential to rent the building to an established theatre operator which would ensure the New Theatre continues to bring some of the best shows to Cardiff for many years to come while reducing the council’s £500,000 annual subsidy.”