The 59,202 sqm drive-in theatre in Dandenong South could fetch for more than $45 million

The closing credits could soon roll at Dandenong South’s Lunar Drive-In theatre, with soaring costs prompting its owners to sell the site.

Owner David Kilderry says the land tax alone is more than $1000 a day. Picture: Richard Serong

The future of Melbourne’s biggest and longest-running drive-in theatre is under a cloud as it goes up for sale and its owner says the site could be redeveloped.

Lunar Drive-In in Dandenong South – one of three drive-ins in Melbourne that has been open for more than 20 years – is being sold by its owners and brothers David and Matt Kilderry.

The 59,202 sqm drive-in theatre at 115 South Gippsland Highway is being sold by GO Commercial, who are expecting to sell the site for more than $45 million.

David Kilderry said he was selling the drive-in theatre as it battled soaring costs including land tax and a lack of new major blockbusters.

“Land tax costs and council rates are constantly rising. 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,” he said.

“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.”

Lunar Drive-In is one of three drive-ins still operating in Melbourne. Picture: Josie Hayden

Mr Kilderry said he was planning for the drive-ins to stay open until mid-2023.

“It could be possibly beyond mid-2023, it could be a developer purchasing the site or a cinema operator, we don’t know.

“It is zoned for commercial use and the other sites that surround us are multinational corporations, so it could be redeveloped.

“It’s my hope that it is kept open as a drive-in … if it doesn’t continue as a drive-in the community will be the ones to miss out.”

Mr Kilderry said he thought about selling before the Covid-19 pandemic.

“We first discussed it even prior to Covid, the pandemic was no friend to us as we were closed for 40 weeks but that’s not the reason for our closure as some have speculated.”

He said two other drive-ins in Adelaide and Newcastle had also recently announced their closures.

“You can see that it’s not just us, the costs are really starting to pile up.

“The drive-ins that announced their closures had sellout after sellout, so if you want to visit Lunar Drive-Ins, it’s best to get in early so you don’t miss out.”

He said he wanted to thank his customers and staff over the years that had been “enormously supportive”.

“Our customers are the same people that keep local businesses open. We see the same faces over and over again, we are very appreciative of their support and our wonderful hardworking staff.”

GO Commercial director Andrew O’Connell said there had been “huge interest” for the site.

“The campaign has only been going for a week and we’ve had more than 50 inquiries,” he said.

“We’ve had interest from a mix of people in the industry and developers, there’s been a really good strong mix of interest in the first week of this campaign.”