Artist’s rendition of the new Porsche sales centre on Terminal Avenue in Vancouver, planned by the Dilawri Auto Group with completion in 2013.
(Rendering courtesy of Dilawri Group)
Canada’s largest auto group, with 41 stores and counting, is spending $75 million in B.C. over the next year, building five new outlets.
“It’s a bit unnerving,” admits Christian Dubois, Dilawri Group of Companies regional director of operations in B.C. “It is a substantial investment.”
That $75 million in construction costs includes a new Porsche and a second Audi dealership breaking ground in Vancouver and a Mercedes-Benz/Smart Car outlet in Langley. As well, there are two relocations planned, the first of which will see the existing Acura dealership on Burrard street in Vancouver relocated to a site next to the Porsche dealership on Terminal by December 2012. “Then we have a bit of a break” and the design phase of a new Acura Langley, rehousing the existing facility will take place, said Dubois.
BRAND AND MARKET EXPANSION
The growth is being credited to a number of factors. The Dilawri Group is relatively new to the B.C. market, having entered four years ago, but is moving quickly to expand. It now owns 11 B.C. retail outlets, a figure that will increase as Mercedes-Benz and Audi stores are added next year. By 2013, said Dubois, Dilawri will have an estimated 11 vehicle brands as “there is currently a letter of intent on file” for another line.
“A lot of our stores were bought,” said Dubois, adding that manufacturers today have set new criteria for retail outlets and these new acquisitions no longer complied. Therefore, new construction was required. As well, the adding of new brands, he said, meant that they needed “new homes.” The investment also reflects a Canada-wide growth in luxury car sales, he said, adding B.C.’s economy has done well. (Industry analyst Dennis DesRosiers estimates luxury car sales will reach 160,000 in 2012, up from 148,000 in 2011 and 135,000 in 2005).
The new Porsche facility will be located at 2nd Ave and Terminal, just at the edge of the downtown core and near the 2010 Winter Olympic Village. Construction has started on site with the completion of the new facility expected to be in early 2013. The value of the project, including land, is $26 million. The 58,000 square foot retail outlet will feature 24 bays, and, an 18,000 sq.ft. showroom.
MULTI-LEVEL SALES CENTRE
Excavators started biting into the ground at the new Audi site at 2nd and Burrard in Vancouver on October 3, after the demolition of an older structure, an Aston Martin store, on site. “We hope to open in the fall of next year,” said Dubois. Since Dilawri already owned the site, the construction of the new Audi sales centre plus a service centre a block away is estimated at $20 million. The sales centre is 5,500 sq.ft and it will feature six levels including two showrooms and the building will sit on a tight lot. “We are building from property line to property line,” he said. The nearby service centre is about 18,000 sq.ft.
The new Mercedes-Benz and Smart Care retail outlet will be housed in a $9.5 million, 46,500 square foot structure on a 3.8 acre site located at Glover Road and the Langley Bypass in B.C.’s Fraser Valley. It will feature a sales centre, showroom, and service centre. Construction started in early September, but ran into a glitch when a fish bearing stream, located on site, had to be accommodated, said Dubois. The dealership will employ approximately 100. “We are looking at a summer 2013 opening,” he said.
The remainder of the $75 million will be allocated to the two relocations. Ledcor Construction has been retained to do the construction of the Dilawri Group’s new buildings.
