It's a case of one door closing and another one opening for Surry Hills residents, on the back of Frank Camorra's announcement that MoVida Sydney will permanently close at the end of June.

The rock and rollers from nearby Porteno have snapped up the space, with plans to completely relocate the restaurant to MoVida's nearby Holt Street site, and convert the current Porteno site on Cleveland Street into an events space.

Co-owner Sarah Doyle said that massive renovation works will kick off in July, with a planned opening date of October. Porteno will continue operating in Cleveland Street until the new site is ready.

"We're going to do an complete overhaul; it's an amazing site, with a really interesting layout, which we're going to optimise a bit more," Doyle said.

"It will still have the same feel [as the original Porteno], with the same people and the same music."

It's a win-win for Sydneysiders, as Doyle, along with restaurateurs Elvis Abrahanowicz and Ben Milgate, plans to host some epic parties in the old space.

"We've been doing live music, weddings and even an Alice McCall [fashion] launch the other day, but at the moment we're just so restricted due to our trading hours. We like we want do there - we just want to do more of it. Live music is a big thing for us, and it has a late night licence that we can use for events."

Doyle and Abrahanowiz jet off to Argentina next week, on a part-personal, part-inspiration seeking trip. The fresh-faced Porteno will still have a signature fire pit, with bar and dining sections, but will gain a private dining room, and possibly a lunch service. The menu will stay true to the classics.

"All of the old favourites will be there, but there are a few new things that the team is working on as well," Doyle said.

"I'll resign if they take the Brussels sprouts off the menu."