The Urban Developer
13 December 2022
Hard-working private developer Pellicano has beefed up its already burgeoning industrial portfolio, acquiring Australia’s biggest drive-in theatre, 35km south-east of Melbourne.
What the 55-year-old Melbourne-based developer paid for the Lunar Drive-In Dandenong and its four giant screens has not been revealed, but The Urban Developer has confirmed it was less than the expected $45 million.
The 66-year-old drive-in sits on 5.92ha of commercial-2 zoning at a time when Australia’s industrial and logistics vacancy rate is at a world-low of 0.8 per cent.
It was the site’s easy access to Dandenong Bypass, Princes Highway, Monash Freeway and Eastlink that generated all the interest.
GO Commercial Industrial director Andrew O’Connell, who brokered the sale, said they’d had 70 inquiries about the drive-in, virtually all of them driven by the site’s potential for an industrial fit-out.
There were seven expressions of interest, which GO Commercial short-listed to five. All five were invited to a second round.
Pellicano managing director Renato Pellicano said it was the site’s proximity to two more of their almost fully developed industrial sites—Innovation Park and M1/M2 Industry Park, both in Dandenong South—which made the drive-in additionally attractive.
“Weve been developing in Dandenong for more than 30 years, so it’s what we know,” said Pellicano. “There’s probably a bit of comfort in that, it’s an area we like.”
O’Connell confirmed none of the participants had reached the expected selling price of $45 million.
“No, I was not disappointed,” he said.