Johnsons Cars is to open three new dealerships, including flagship Volkswagen and Volvo showrooms, in Solihull, at a cost of £10 million.

The dealerships are on the former Dave & Busters restaurant site on the Stratford Road.

Colliers International acquired the four acre site which includes a 50,000 sq ft building, from Gallagher Developments on behalf of Johnsons Cars.

The building has been vacant for 10 years, since the closure of Dave & Busters.

It had previously received planning consent for a B&Q warehouse and was earmarked as a potential location for a new casino.

Johnsons Cars plans to refurbish the building, with work due to start on site in November.

When finished the building will accommodate a 30-car Volkswagen showroom (pictured) – its largest in the UK.

Established in 1999, Johnsons Cars was at number 39 in this year's AM100 with turnover of £222m (2009: £208m) on total car sales of 12,527 units.

The company is based in Redditch and operates 21 dealerships in 15 locations across the UK, including existing Volkswagen dealerships in Birmingham city centre, Solihull, Sutton Coldfield and Tamworth.

This latest acquisition represents a £10 million investment by the company.

Mike Berwick, group operations directors at Johnsons Cars, said: “Opportunities to represent new motor manufacturers in the Solihull area are scarce due to the demand for land in prominent roadside locations.

"This development was created from a tentative enquiry into short-term storage space. Johnsons and Colliers International have once again delivered a fantastic project by combining teamwork and vision outside the normal box.”

John Roberts, a director in Colliers International’s automotive and roadside team in Birmingham, said: “This particular stretch of the Stratford Road is well known as a centre of vehicle retailing in the West Midlands, with Audi, Honda, Toyota, Land Rover, BMW and Porsche already well established in the area.”