HK group spends $200m on Mercedes-Benz showrooms
Hong Kong’s Lei Shing Hong group is spending $200 million developing new Mercedes-Benz showrooms in Queensland and a new “glass box” lifestyle store in the Brisbane CBD.
The private conglomerate, which last year paid billionaire Kerry Stoke’s Seven Group $540m for its WesTrac China Caterpillar and equipment distribution business, owns the 22-storey 300 Adelaide St building in the CBD where it is developing a new Mercedes-Benz merchandise, restaurant and customer point-of-contact boutique.
Mercedes-Benz Brisbane principal Shane Parkins says Lei Shing Hong Auto Australia has three new projects under way: a 32,000sqm five-level showroom and facility in Brisbane’s inner city Breakfast Creek, a 10,000sqm dealership in the outer suburban North Lakes and the new CBD boutique, which will open in August.
Commercial Insights: Subscribe to receive the latest news and updates
“With the way retail has been evolving and will continue to evolve, we know that consumers want to experience the essence of a brand, not just its products,” Parkins says.
LSH’s CBD store wasn’t aimed at selling cars, he says.
“Most people are intimidated by walking into a car dealership,” Parkins says, noting that the Adelaide St store will refer potential customers to dealerships rather than handle negotiations. The store will have a few cars on display.
The boutique is based on the international network of Daimler-owned Mercedes Me stores, which includes an outlet in Melbourne that opened last year. The concept includes using the store for collaboration events in food, art, fashion, sport and innovation.
The CBD location would help attract new people to the brand as well as provide services to existing customers, Parkins says. The store, in a glass enclosed podium, will also have Mercedes cater for service bookings.
Lei Shing Hong, which owns Mercedes-Benz dealerships in Asia, Britain, Germany as well as Australia, also develops retail and commercial property, and operates trading and financial services in 11 countries. It established a property division in 2003 to develop commercial and industrial property and has tenants such as Daimler, Caterpillar, Nestle, Hewlett-Packard and HSBC.
This article originally appeared on www.theaustralian.com.au/property.
