In a significant move for Sydney's cultural landscape, Star Entertainment Group has finalized a $60 million deal with Stephen Found to create a Broadway-style theatre, a live music venue, and a cabaret room in Pyrmont.

This new development will enhance the existing theatre offerings, including the Foundation's Lyric and the upcoming Foundry Theatre, establishing a vibrant five-venue theatre district akin to London's West End.

A recent confidential government report highlighted that Sydney's theatre scene is currently lagging behind Melbourne, primarily due to a critical shortage of venues that has delayed major premieres.

The ambitious plans involve transforming The Star's events centre into a two-level, 1550-seat proscenium arch theatre, alongside a separate 1000-seat venue dedicated to contemporary music and comedy.

Graeme Kearns, CEO of Foundation Theatre, expressed optimism that these new venues will adequately address the demand for commercial theatres in Sydney over the next decade.

Projected construction and conversion costs are expected to exceed $100 million, with the new venues anticipated to open by 2026.

In addition to these developments, the Metro Minerva Theatre in Kings Cross was acquired for $26 million by Gretel Packer's Sacred Firebird, aiming to restore its theatrical heritage.

Plans also include the construction of a 550-seat cabaret room in a vacant space adjacent to the Sydney Lyric theatre.

The new Broadway-style theatre is set to feature a stage comparable to that of Melbourne's Princess Theatre, which is renowned for hosting popular productions like 'Harry Potter and the Cursed Child'.

Star chief executive Steve McCann emphasized the long-standing partnership with Foundation Theatres, which has owned the Sydney Lyric since 2011.

Despite these promising developments, Star Entertainment may encounter financial challenges, as proceeds from the sale will be restricted cash held by lenders, complicating access to $100 million in loans.

Paul Nicolaou from Business Sydney hailed the acquisition and new projects as a win-win for the city, significantly enhancing its live entertainment and theatre offerings.