MAMA Group, the parent company of live music chain Barfly, has taken over the lease of Birmingham's Digbeth Institute with a promise to deliver a flagship venue for the city.
In a statement to the London Stock Exchange, MAMA said it would be embarking on an extensive refurbishment of the 100-year-old building,
It added: "The refurbished Institute (which will be fully refitted during the course of 2008) will have four different sized spaces with state of the art facilities. The Institute will become a musical hub for the city and a flagship venue at the heart of the city's regeneration plans."
Barfly has been sub-letting a 400-capacity room at the back of The Sanctuary since July 2004. Refurbishment plans will extend this room to accommodate 600.
The main Auditorium will hold 1500 -1700 people and would fill a regional gap for medium scale venues, the company said. Rooms of 150 and 300 capacity will also be developed.
"This exciting development will ensure that Birmingham no longer misses out on artists touring at this level who have traditionally bypassed the city because of lack of suitable 1500 capacity space," MAMA added.
"The range of room capacities within the building will enable local talent to grow and develop on home turf. Additional rehearsal space and fully integrated digital facilities will play their part in nurturing that local talent."
Renovations are expected to be completed by September 2008.
Adam Driscoll and Dean James, co-chief executive officers of MAMA said: "We are delighted to have enhanced our Birmingham presence with the acquisition of this landmark venue.
"The venue has been at the heart of the Birmingham music scene for many years and is a significant addition to our growing network of live music venues with exciting potential for further development."
MAMA takes over the lease from The Sanctuary Nightclub, which played a key role in the development of the UK rave scene in the 1990s.
It was home to a number of well-known club nights including after club hours event Sundissential and techno night Atomic Jam. It was also the first home of international superclub brand Godskitchen.
The Edwardian building, designed by architect Arthur Harrison, was originally an institutional church attached to the Carr's Lane Congregational Church. It was officially opened by the Pastor's wife on January 16, 1908.