Built in 1879 on land owned by I. J. Josephson and opened asKelly and Leon's Opera House for the New York minstrel company of drag performers Edwin Kelly andFrancis Leon, it was situated onKing Street near theYork Street intersection; a number of smaller buildings at the corner ofPitt Street and York Street being demolished to make way for the grand building. The architects wereBackhouse & Sons.[1] When Kelly and Leon's lease expired in 1880, their name was dropped and the venue was advertised for lease.[2]
It reopened as "Sydney Opera House" in September 1880[3] and for much of the 1880s was under the management ofW. J. Wilson, who was joined byEduardo Majeroni in 1884.[4]
In February 1900 the orchestra struck for payment of arrears in wage payments and rather than concede, the management closed the theatre. By this time, owned by Percy Josephson, it became a warehouse for W. and A. McArthur, Ltd. and was demolished in 1927.[4] Construction on theGrace Building started at the site in 1928.