THE Chelsea Cinema will double as a live music and theatre venue under new operators Republic Theatres.

Company co-owner Michael Todd wants the heritage-listed cinema to host Fringe and Adelaide Festival events, on top of its normal film program.

The cinema will also look to stage bands, plays and school productions.

Mr Todd insisted the main auditorium would stay intact, easing concerns that it would be carved up to create a multi-screen cinema.

The Chelsea’s long tradition of hosting fundraising events will also continue.

“You can do a lot more there than just play films,” Mr Todd, whose company last month secured the cinema’s lease, said.

He said live performances would only require minor additions to the auditorium, including sound and lighting.

“It will be very discreet and sympathetic to the building.”

Mr Todd said there was an option to expand the cinema to the east to create more screens, but any changes would be four years away.

The news comes after six months of confidential discussions by Burnside Council to appoint a new operator for the Chelsea.

Mr Todd and his business partner Michael Schneider defeated bids by the Maras Group and Wallis.

The pair also run the Trak Cinema at Toorak Gardens.

Save the Chelsea Action Group spokesman Andrew Phillips was “cautiously optimistic” about the decision.

“We hope the … operation is successful and increases the patronage and usage of the cinema,” Mr Phillips said.

Republic Theatres’ lease is for seven years with the option to extend for a further 25 years.