Dandenong’s Lunar Drive-In set to close after sale to developers
Melbourne’s biggest and longest-running drive-in theatre is off the market with its new owners set to redevelop the iconic site.
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Melbourne’s biggest and longest-running drive-in theatre is off the market with its credits set to roll for the final time this year.
Lunar Drive-In, located in Dandenong, was sold by brothers David and Matt Kilderry to Australian developers Pellicano in December last year.
It’s unclear how much the 59,202 sqm site was snapped up for but it’s understood it was less than the expected $45m.
David Kilderry told the Herald Sun he was sad to shut the theatre’s doors.
“Our family has worked shift work, weekends and been on call 24/7 for decades now, and while we love the drive-in business and seeing families, couples and kids entertained, these hours do take a toll after many years,” he said.
Mr Kilderry said the sale was triggered by soaring costs including land tax and a lack of new major blockbusters.
“Land tax costs and council rates are constantly rising,” he said.
“We pay more than $1000 a day for land tax alone and in future years it will be up to $700,000 in no time and council rates are $60,000 a year.
“We have also realised that the bread and butter films such as comedy and action films are not made anymore – there’s far fewer comedies anywhere.”
The site opened about 20 years ago with the cafe and ticket box revamped in 2020.
Mr Kilderry said the drive-ins will close mid-2023 with Pellicano expected to redevelop it.
“I believe they plan to redevelop the site, but I really don’t know of their plans,” he said.
“It will not remain as a drive-in.”
He said despite some interest from other cinema companies, the operating costs were too high for any of them to consider a bid.
Pellicano, established by brothers Frank and Nunzio Pellicano, have been developing in the Dandenong area for more than 30 years.
The business owns and manages 180 properties and counts about $4b of completed development across residential, retail, commercial and industrial spaces.
Pellicano were contacted for comment.
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