ASG buys BMW Melbourne

By Neil Dowling on 31st August 2017 Dealerships, Real Estate Autosports Group, BMW, Melbourne

BMW Australia has sold one of its two factory-owned dealerships, with BMW Melbourne purchased by Autosports Group Ltd (ASG) for $22 million.

As announced exclusively by GoAutoNews Premium earlier this month, BMW plans included the possibility of selling the existing building for redevelopment and retaining a showroom.

BMW Australia CEO, Marc Werner, told GoAutoNews Premium that the showroom would be retained because it was integral with the Southbank community and clientele of the brand. He said one possibility would be that BMW would continue to operate the showroom.

However ASG – which also owns BMW Doncaster and BMW Bundoora – this week announced that it would buy the business. The news came as ASG reported its first full year as a listed public company and posted $1.44 billion in revenue.

The sale of the Melbourne entity covers all businesses operating under the banner, including BMW Melbourne, Mini Garage Melbourne, Southbank Motorcycles and BMW Bodyshop.

The agreement carries provisions for the retention of current business operations, staff and processes.

BMW Australia said the deal with ASG was a completely separate transaction from the recently announced intention to sell the BMW Southbank property.

The ASG purchase of the business will also change its name, a subtle move from BMW Melbourne to Melbourne BMW.

Mr Werner said the BMW Melbourne business was critical to the future success of the company.

“The BMW Group is about to experience a massive influx of exceptional product in the Australian market, and we are ensuring we have a seamless network structure and partners to guarantee the highest levels of customer service,” he said.

“This sale represents an extension of an already-successful relationship with Nick Pagent and the ASG Group, and I am delighted to note this further commitment to the BMW brand.”
ASG CEO Nick Pagent said: “This acquisition is a perfect strategic and geographic fit for Autosports Group”.

“We are looking forward to deepening our relationship with the BMW Group in the important market of Melbourne. We thank BMW Group Australia CEO Marc Werner for his collaborative approach to the acquisition.”

By Neil Dowling