Industrial developer secures Dandenong South drive-in
Local heavyweight Pellicano has swooped on a major south east Melbourne industrial development site, outlaying a speculated $40 million.
The 5.9 hectare parcel at 115 South Gippsland Highway, Dandenong South – operating since 2002 as the Lunar Drive-in – is set for a business park.
About 50,000 square metres of product could be delivered, or more, if multi-storey structures are considered.
A leasing campaign seeking pre-commitments is expected to kick off next year.
GO Commercial’s Andrew O’Connell and Pierre Ghougassian are the agents.
The drive-in operators, David and Matt Kilderry, were the vendors.
Lunar is one of 12 of venues of its type in Australia and three in Victoria.
In 2018, Charter Hall paid $12.5m for the 8.1ha Coburg Drive-in, within Coburg North’s industrial pocket, with a leaseback to Village.
Pellicano replenishes
The Dandenong South property acted as a drive-in prior to Lunar opening up; in the 1960s, it was owned by Village (story continues below).
It has also dubbed as a trash and treasure market.
Pellicano is one of the area’s largest industrial real estate owners – also said to control c95 per cent of available vacant land with Frasers Property Industrial, Goodman and Salta.
In October, it secured two tenants – Freedom Suites and Mary Dental Oakleigh – to The Links, a bulky goods asset, at Oakleigh South.
Three months ago the group signed a swag of Dandenong South industrial leases including to Amazon, which recommitted for five years to the 24,376 sqm National Drive warehouse which was its first Australian distribution centre in 2017.
Other deals in that estate, the M2 Industry Park, were struck with Bulk Group, for 12,190 sqm, Storefast (8624 sqm) and Woodhouse Timber (5769 sqm).
Pellicano also agreed pre-commitments there, with Johnson Health Tech Australia – for a 4407 sqm warehouse – and Etex Australia (4311 sqm).
Industrial vacancy in Melbourne’s south east is estimated at 0.5pc, lower than the north and east (1.5pc) and west (2.8pc).
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