The U.K.'s Academy Music Group Ltd (AMG) has pledged to invest £2 million ($3.95 million) in a major redevelopment of its Oxford music venue, the Zodiac.

The company, which operates 12 branded music venues nationwide, purchased the Zodiac in November and will launch the refurbished venue in September after a four-month redevelopment program.

AMG will create three separate performance spaces and increase the total capacity from 750 to 1,150. The main venue is set to be renamed Carling Academy Oxford and, with an increased capacity of 900 and improved technical capabilities, AMG says it will attract a high calibre of international touring artists. The secondary venue upstairs will retain the Zodiac name.

"The purpose of the new Zodiac marks a positive step in AMG's policy for encouraging and developing new bands and artists and giving them the opportunity to play in a professionally equipped venue," says Carl Bathgate, AMG GM, "as well as offering artists an additional platform to play other slots and gigs within AMG's estate."

AMG's venues include Carling Brixton Academy and Shepherd's Bush Empire in London, and the Brighton Hippodrome, which it acquired in February.

The plan to redevelop the Zodiac follows investment by live music giant Live Nation last month. Live Nation and Gaiety Investments jointly own a combined 56% share in AMG. AMG plans to use the investment to expand into locations where it currently operates no live music outlets.