China group swoops for Merc dealerships
A PORTFOLIO of nine Mercedes-Benz dealerships in the North West and the Midlands have been sold to a Chinese group.
The deal sees Hong Kong-based Lei Shing Hong, which represents the Mercedes marque in Chine, South Korea and Cambodia, gain its first foothold in the UK.
Included are five outlets in the North West where 336 staff work. They are: Manchester Central (Ashton New Road); Manchester Used Cars (Ashton Old Road); Whitefield; Macclesfield and Stockport.
More than 260 staff are employed across the four sites in the West Midlands – Lawley Middleway and Bromford Lane (used cars), Birmingham; Mile Oak, Tamworth, and Warwick Road, Solihull. All staff will transfer to the new business.
Knight Frank’s automotive team undertook pre-acquisition due diligence for Lei Shing Hong and valued the property assets of the nine Mercedes-Benz Retail dealerships. The Hong Kong group beat more than 20 bidders to win the portfolio. The price of the deal has not been disclosed.
Tom Poynton, a partner in the firm’s national automotive team, said: “This is the first time Mercedes has disposed of any of its UK sites and is part of a wider trend we are seeing in the sector, with manufacturers choosing to concentrate on making cars rather than selling them.
“We believe this is a landmark transaction in the motor retailing sector and demonstrates global corporations’ confidence in the UK automotive industry.”
