[1] Built by Sociedade Avenida Parque, Ltda and designed by the architect Luís Cristino da Silva, the cinema-theatre, constructed with reinforced concrete, was officially opened on 10 July 1931.

It was designed to be multifunctional, serving as a theatre, music-hall and cinema, and featured numerous innovations, including a naturally lit auditorium and a roof terrace for outdoor film screenings, which was accessed by moving ramps.

In 1960 the Brazilian company Teatro Popular de Arte, led by Maria Della Costa, introduced the Portuguese public to Bertolt Brecht's The Good Person of Szechwan.

Several attempts were made to rescue it but in the early 2000s it was proposed to demolish the theatre and replace it with a new performing arts centre, to be designed by the Canadian-American architect Frank Gehry.

This idea provoked controversy and was eventually dropped, mainly as a result of the efforts of "Citizens for Capitólio", which argued that the existing building should be restored.

The rehabilitated theatre was opened in November 2016, equipped with up-to-date stage, sound, and screen technologies and addressing modern safety standards.