Motor dealer Colliers Group has been acquired by Jardine Motors.

The deal sees Jardine Motors, which trades as Lancaster, take over the majority of Colliers Group, specifically its Land Rover (below), Honda and Mazda dealerships in Erdington and its Jaguar showroom in Tamworth.

Colchester-based Jardine said the undisclosed purchase was being driven by Jaguar Land Rover's push for a common ownership model.

The deal sees the group's portfolio increase to five Land Rover businesses, six Jaguar, four Honda and its inaugural Mazda site.

In addition to acquiring the franchises, the deal also includes the purchase of Colliers Group's central parts hub.

Jardine's chief executive Neil Williamson said: "This is a great acquisition as we combine Colliers Group's family business values with our cutting edge retail experience.

"This new business will help drive forward our ambitious growth plans for 2016.

"We look forward to welcoming our new colleagues from Colliers Group into the Jardine family."

He added: "The automotive industry is really thriving in the Midlands, especially with the investment being made by Jaguar Land Rover and its new manufacturing site, so we're keen to strengthen our presence in the region."

Jardine Motors also recently started work on a brand new multi-million pound development for Land Rover in Wolverhampton.

Separately, property group Knight Frank Investment Management has acquired the freehold of the Land Rover, Honda and Mazda showrooms, on the A38 Tyburn Road, for its Long Income Property Unit Trust for £17 million.

The sale and leaseback deal was brokered by Knight Frank's Birmingham-based automotive team, headed by Adam Chapman.

He said: "Opportunities of this quality are rare. The transaction demonstrates the continued strong demand from institutional investors for prime automotive stock, and also an emerging trend that the very best assets are increasingly being traded in off market transactions."

Jardine Motors has new 20-year leases on the trio of sites following the buyout of Colliers Group and this deal is said to be the largest car dealership investment to transact this year so far.

Property consultancy Bilfinger GVA advised the vendor.

Paul Taylor, head of automotive and roadside at the consultancy, added: "The acquisition is the latest in a series of takeovers in the sector.

"The key driver of a number of recent deals has been the quality of the franchises involved and the opportunity to acquire these businesses.

"Specifically, a newly developed Land Rover dealership was a major coup for our client who in recent months has invested heavily in the West Midlands region.

"This deal demonstrates the on-going demand from institutional investors for the best quality assets."