Malaysian BMW Distributor Obtains Oz Dealerships

Sime Darby Motors, the automotive arm of Malaysia-based multinational conglomerate Sime Darby Bhd, is expanding its BMW dealership operation to Australia.

It’s entering Australia’s luxury market via the 238.4 million ringgit ($73.9 million) acquisition of a 70% stake in Brisbane BMW Group, consisting of LMM Holdings and Brisbane BMW Unit Trust, as well as 100% proprietorship rights of the land and buildings.

The Brisbane BMW Group has two BMW dealerships and one Mini and Lamborghini store apiece.

The Queensland acquisition expands Sime Darby Motors’ footprint as a BMW distributor and dealer in the Asia-Pacific region where its presence in eight countries, including China, Thailand, Singapore and Malaysia, makes it one of the German luxury brand’s largest dealer groups in the world.

The deal is expected to be completed by the end of February, subject to the consent of Australia’s Foreign Investment Review Board.

Sime Darby, through a subsidiary, already has Peugeot and Citroen distribution businesses and a Porsche dealership based in Sydney.

It says 75% of the 1 million vehicles sold annually in Australia are in the states of New South Wales, Victoria and Queensland, and sees its focus of growth in the metropolitan areas of Sydney, Melbourne and Brisbane.

Managing Director Lawrence Lee says the acquisition will allow Sime Darby to further consolidate its position in Australia’s luxury segment.

“As a major regional automotive group, we have been exploring expansion opportunities in new and existing markets,” Lee says in a statement. “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.”