AUSTRALIA’S biggest automotive retailer just became larger, this week buying the Essendon Ford and Mitsubishi dealerships for $8.5 million plus stock and assets.

It was one part of a move into Essendon Fields with Automotive Holdings Group Ltd (AHG) also announcing it would develop a new Jaguar Land Rover dealership on a greenfields site in the precinct.

The purchase of Essendon Ford and Mitsubishi, previously owned by Wirraway Road Trading, is expected to be settled next month.

The development of the JLR dealership will start within two months and is expected to be completed later this year or early in 2018.

AHG managing director John McConnell said that the addition of the two Essendon dealerships “represented a valuable addition to the company’s presence in the Victorian capital”.

“The Essendon Fields precinct is a well-recognised retail automotive location and these acquisitions add to our presence in Melbourne,” he said.

“We expect to drive both incremental revenue and cost synergies across the two dealerships.”

Mr McConnell hinted that more acquisitions and expansions could be made within Essendon Fields.

“The transaction is firmly in line with our ongoing automotive aggregation strategy and an excellent opportunity to secure dealerships that can be integrated into an AHG retail hub.”

AHG’s expansion now lifts its franchises to 184 and its locations to 111 in Australia and New Zealand.

By Neil Dowling