Driven to diversify

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This article was published 19/09/2022 (1279 days ago), so information in it may no longer be current.

When it comes to selling souped-up sedans and sensible SUVs, Ashok Dilawri knows the industry inside and out. The head honcho of his family’s group of dealerships started in the car sales world nearly 50 years ago, back when auto sales were a money-losing business and he was a newcomer to Winnipeg trying to make an honest living.

But Dilawri persisted and built a company now composed of six Crown dealerships, three autobody shops, and no small amount of extra real estate.

On McPhillips Street, Dilawri purchased about 11 acres of land in the mid-2000s to build his Crown Honda dealership, but once the dealership was built, there was a significant slice of surplus land behind it. “I thought maybe I’d add more dealerships, or make it into a mini automall,” said Dilawri. “But most of the franchises were already in the area.”

So for over a decade, the land sat, in wait of a purpose. Then an idea struck: what if the land’s best use wasn’t in the industry Dilawri knew so well. What if it could be used for apartments instead? Dilawri had been inspired by certain apartments he’d seen during his winters snowbirding in Miami, and wanted to build something similar here.

“Whenever I go, I see lots of great buildings,” he said. “I wanted to bring some of what I see missing in the market.

“We’re of course very into the car-dealership business, but this is a way to diversify,” he added.

Eighteen months ago, construction began on Dilawri’s first foray into residential real estate, a five-storey, 124-unit rental complex known as Sachi Apartments. The name, he said, has positive connotations in a number of Asian cultures, including in Japanese and Indian languages, meaning serene, pure or truth.

It’s a concrete edifice built by Bockstael Construction, designed by local architect Raymond S.C. Wan, with high-end interiors that emphasize clean, straight lines, Dilawri said. Each unit has a balcony, walk-in closets and in-suite laundry. In one-bedroom, two-bedroom and three-bedroom formations, the prices start around $1,300 per month, topping out at around $2,000, Dilawri said.

With move-ins starting Oct. 1, Dilawri said about a quarter of the units have already been leased. The building’s costs were about $30 million, all of which was funded locally.

The project was developed by A3 Partners Ltd., a firm that operates at an arm’s-length from the automotive side of the business and handles investments and other special projects, says Chevy Luk, who has worked for Dilawri and A3 for about four years.

“The way Ashok approaches business from the car side is to treat the customer like a guest in your home,” Luk said, which made the entry into the residential world a natural one.

And it appears there are plans for further development on that side of the business, Luk said. Behind the Sachi complex are about three acres of unused land, upon which the firms are currently assessing the highest and best use, Luk said. The Sachi Apartments are Phase 1, Luk said, and what goes there will be Phase 2. Meanwhile, the company is looking for other opportunities to develop around the city.

The future project would border Pipeline Road, and Dilawri said early plans are to develop more apartments in a similar style, with potential changes to be determined by the response to the Sachi complex. There are amenities, including underground parking, which may be considered for the next project on the parcel of land.

Dilawri said he’s been excited to see the apartments go up and begin to lease, but that he will really be glad when people begin to move in.

“My goal is to provide people a place to enjoy living,” he said. “I like building new things.”

ben.waldman@winnipegfreepress.com