By 1885, the theatre came under the control of "The Triumvirate", a partnership between J. C. Williamson, George Musgrove and Arthur Garner.
The existing theatre had become rundown, and so the Triumvirate resolved to demolish the existing building.

The new theatre, designed by architect William Pitt, interiors designed by George Gordon, and built by Cockram and Comely, was completed in 1886 at a cost of £50,000.
The design is in the exuberant Second Empire style, and the theatre forms part of the Victorian streetscape of Spring Street.
The theatre re-opened, again, on 18 December 1886, this time simply known as the Princess Theatre, with a performance of Gilbert and Sullivan's The Mikado.

When completed, it featured state-of-the-art electrical stage lighting, as well as Australia's first sliding or retractable roof and ceiling which provided ventilation from the auditorium.
The marble staircase and grand foyers were hailed as equal to that of the Paris Opera, the Frankfurt Stadt and the Grand in Bordeaux.

Williamson left the Triumvirate in 1899 to form his own company, and Musgrove continued operate the theatre until 1910.
The Princess came under a rapid succession of different owners until 1915, when Ben Fuller took control.
Fuller then went into partnership with Hugh J. Ward, and in 1922 they engaged the architect Henry Eli White to extensively renovate the auditorium and foyers, and add the grand copper awning.
The New Princess Theatre reopened on 26 December 1922 with a performance of The O'Brien Girl.

The theatre was purchased from Fuller in 1933 by Efftee Films, the film production company of F. W. Thring, the theatrical and film entrepreneur, who had his initials FT carved over the proscenium arch.
He produced several musicals there, and made it the first home of his radio station 3XY, founded 1935.

When F.W. Thring died, Ben Fuller and Garnet Carroll took over the lease of the Princess in Melbourne and in 1946 they formed another partnership forming Carroll-Fuller Theatres Ltd to purchase the Princess Theatre.

After Sir Ben Fuller's death in 1952, Carroll assumed complete control.
 For the following 12 years, often in association with other entrepreneurs, he presented an eclectic array of opera, ballet, musical comedy and drama, though he was constrained by the lack of an interstate circuit.
At the Princess in 1954 he hosted the National Theatre Movement’s gala performance of The Tales of Hoffmann for Queen Elizabeth II and Prince Philip.
Other notable productions included Ballet Rambert (1947-48), the Old Vic Theatre Company with Sir Laurence (Lord) Olivier and Vivien Leigh (1948), the Shakespeare Memorial Theatre Company (1949), the Vienna Boys' Choir (1954), the Chinese Classical Theatre (1956) and the Sadler's Wells Opera Company (1960 and 1962).
Carroll often staged elaborate American musicals—among them Kismet (which he himself produced in 1954), The Sound of Music (1960), The King and I (1960) and Carousel (1964)—while they were still in their early months on Broadway, and tried unknown singers and actors.

Carroll died on 23 August 1964 and ownership passed to his son, John Carroll.
For some years he maintained the pattern set by his father, but in 1969 the family company, Carroll Freeholds Pty Ltd, leased the Princess to the Australian Elizabethan Theatre Trust.
Over time, the theatre was used less frequently, and the theatre fell into disrepair.
By 1885, the theatre came under the control of "The Triumvirate", a partnership between J. C. Williamson, George Musgrove and Arthur Garner. The existing theatre had become rundown, and so the Triumvirate resolved to demolish the existing building. 
The new theatre, designed by architect William Pitt, interiors designed by George Gordon, and built by Cockram and Comely, was completed in 1886 at a cost of £50,000. The design is in the exuberant Second Empire style, and the theatre forms part of the Victorian streetscape of Spring Street. The theatre re-opened, again, on 18 December 1886, this time simply known as the Princess Theatre, with a performance of Gilbert and Sullivan's The Mikado. 
When completed, it featured state-of-the-art electrical stage lighting, as well as Australia's first sliding or retractable roof and ceiling which provided ventilation from the auditorium. The marble staircase and grand foyers were hailed as equal to that of the Paris Opera, the Frankfurt Stadt and the Grand in Bordeaux.
Williamson left the Triumvirate in 1899 to form his own company, and Musgrove continued operate the theatre until 1910. The Princess came under a rapid succession of different owners until 1915, when Ben Fuller took control. Fuller then went into partnership with Hugh J. Ward, and in 1922 they engaged the architect Henry Eli White to extensively renovate the auditorium and foyers, and add the grand copper awning. The New Princess Theatre reopened on 26 December 1922 with a performance of The O'Brien Girl.
The theatre was purchased from Fuller in 1933 by Efftee Films, the film production company of F. W. Thring, the theatrical and film entrepreneur, who had his initials FT carved over the proscenium arch. He produced several musicals there, and made it the first home of his radio station 3XY, founded 1935.
When F.W. Thring died, Ben Fuller and Garnet Carroll took over the lease of the Princess in Melbourne and in 1946 they formed another partnership forming Carroll-Fuller Theatres Ltd to purchase the Princess Theatre.
After Sir Ben Fuller's death in 1952, Carroll assumed complete control.  For the following 12 years, often in association with other entrepreneurs, he presented an eclectic array of opera, ballet, musical comedy and drama, though he was constrained by the lack of an interstate circuit. At the Princess in 1954 he hosted the National Theatre Movement’s gala performance of The Tales of Hoffmann for Queen Elizabeth II and Prince Philip. Other notable productions included Ballet Rambert (1947-48), the Old Vic Theatre Company with Sir Laurence (Lord) Olivier and Vivien Leigh (1948), the Shakespeare Memorial Theatre Company (1949), the Vienna Boys' Choir (1954), the Chinese Classical Theatre (1956) and the Sadler's Wells Opera Company (1960 and 1962). Carroll often staged elaborate American musicals—among them Kismet (which he himself produced in 1954), The Sound of Music (1960), The King and I (1960) and Carousel (1964)—while they were still in their early months on Broadway, and tried unknown singers and actors.
Carroll died on 23 August 1964 and ownership passed to his son, John Carroll. For some years he maintained the pattern set by his father, but in 1969 the family company, Carroll Freeholds Pty Ltd, leased the Princess to the Australian Elizabethan Theatre Trust. Over time, the theatre was used less frequently, and the theatre fell into disrepair.
Princess Theatre (Melbourne)