One of three Melbourne drive-in theatres, and 12 in Australia, is for sale as an industrial development site.
The Lunar, on a 5.9 hectare battleaxe shaped block at 115 South Gippsland Highway, Dandenong South, is expected to fetch over $45 million.
The vendors, brothers David and Matt Kilderry, are offering it as a freehold going concern – it is considered the country’s best or equal best performing venue of its type.
However, given its location in one of Melbourne’s tightest held and most valuable industrial precincts, 600 metres from the Dandenong Bypass, the hardstand is expected to wind up in the hands of a major player, possibly an institution.
The property’s northern boundary abuts a 4.1ha collection of sites Cadence acquired early last year for $14m then onsold on a funds through basis as a 40,830 square metre business park to Centuria for a speculated c$89m.
Frasers Property Industrial, Goodman, Pellicano and Salta are amongst the area’s most important players – and potential Lunar suitors.
Between them, these builders control almost all the c125ha in Dandenong/Dandenong South available for development.
GO Commercial and Industrial’s Andrew O’Connell and Pierre Ghougassian are marketing 115 South Gippsland Hwy.
The agents said the south east industrial vacancy rate is 0.5 per cent compared to the east and west (1.5pc) and north (2.8pc).
Developed on the site of a farm in 1956 as the Pinnacle Drive-In, the venue originally contained a single wooden screen and 650 bays (story continues below).
It also served food – specifically, BBQ meat and grilled fish.
Village acquired it in the 1960s, changing the name (to Village Dandenong Drive-In) and upping the car capacity to 900.
Between 1984-2000 the property was predominantly used as a trash & treasure market.
The Kilderrys bought the block in 2000, reopening it as a drive-in two years later.
They also increased the number of screens to four.
On Commercial 2 zoned land also fronting Hallam Valley Road, and able to accommodate well over 50,000 sqm of industrial product, the land tax bill has risen significantly since then, now exceeding $1000 a day.
The listing comes four years since Charter Hall paid Village $12.5m for the eight hectare Coburg Drive-In, at Coburg North, which was offered with a leaseback expiring in 2028, then with options.
That business opened in 1965.
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