BMW Sydney, in Craigend Street in the inner-city suburb of Rushcutters Bay, is expected to take about 12 months to complete.

The revamp involves building a new perimeter and then adding a five-storey complex with two showrooms, offices, workshop, a parts storage area, training centre and parking.

BMW Group Australia general manager of corporate communications Lenore Fletcher said the expansion of BMW products, increased sales and demand for service and parts was the reason behind the substantial renovation.

It is one of two dealerships in Australia owned by BMW. Ms Fletcher said the second, at Southbank in Melbourne, is also expected to be upgraded but not to the same level as the Rushcutters Bay site.

Audi’s headquarters and Sydney dealership cost $50 million to build when completed in 2009, while Mercedes-Benz’s Alexandria premises was a more modest $18 million in 2010.

In 2012, Audi announced a $25 million upgrade to its flagship Audi Centre Melbourne dealership.

By Neil Dowling