Sime Darby Motors establishes BMW foothold in Australia
Sime Darby Motors establishes BMW foothold in Australia
Sime Darby Motors, the automotive arm of Sime Darby Berhad, has signed agreements to clinch its first BMW dealership in Australia, making its entry into the luxury market in Australia where it already has a presence through other marques.
The acquisition of the BMW dealership in Australia will expand Sime Darby Motors’ footprint as a BMW distributor and dealer in the Asia Pacific region, where it already has a strong presence in eight countries.
Sime Darby Motors has signed agreements with several parties on 29 November 2013 to acquire a 70% stake in Brisbane BMW Group consisting of LMM Holdings Pty Ltd and Brisbane BMW Unit Trust as well as 100% proprietorship rights of land and buildings owned by its shareholders for a purchase consideration of RM238.4 million (AUD80.7 million).
The Brisbane BMW Group currently has two BMW dealerships, one Mini dealership and one Lamborghini dealership.
The Brisbane BMW Group is one of the best performing BMW dealerships in Australia with a strong customer base.
Sime Darby via Sime Darby Motors (SDM) Australia already has Peugeot and Citroen distribution businesses and a Porsche dealership, which are based in Sydney, New South Wales.
With the acquisition, SDM Australia will have the opportunity to penetrate the Brisbane market. Seventy five percent of the annual one million vehicle sales in Australia is generated from New South Wales, Victoria and Queensland. The focus of growth for SDM Australia will be in the metropolitan areas of Sydney, Melbourne and Brisbane.
“The acquisition will allow us to further consolidate our position in the luxury segment in Australia. As a major regional automotive group, we have been exploring expansion opportunities in new and existing markets. Adding BMW to our existing operations in Australia adds a feather to our cap and will enable SDM Australia to significantly expand the existing retail business in the country and penetrate the Brisbane market,” said Dato’ Lawrence Lee, Managing Director of Sime Darby Motors.
The acquisitions, which are expected to be completed by end of February 2014, are subject to certain conditions which include, among others, the consent of the Foreign Investment Review Board, BMW Australia Limited and Automobili Lamborghini S.p.A.
Sime Darby Motors is one of the largest BMW dealer groups in the world, with a network that spans eight countries including China, Thailand, Singapore and Malaysia. The Division is also the third biggest profit contributor to the Sime Darby Group for the year ended 30 June 2013, after the Plantation and Industrial Divisions.