Marshall Motor Holdings is to open a combined Ford PAG development on a three-acre greenfield site alongside a cinema multiplex on a retail park close to the centre of Peterborough, Cambridgeshire.

Further investment is going into other franchises in the city – most of which are sited close to the new development in the Boongate area.

Jaguar, Land Rover and Volvo showrooms will be separate, with one workshop for the three brands. Greeters at a used car centre close to the showrooms will introduce customers to sales staff from the relevant brand.

The Marshall group bought the land from English Partnerships which replaced the Commission for New Towns and the Urban Regeneration Agency. Because of a confidentiality agreement, the cost of the development is not being revealed. A fourth brand will later be sold from a new dealership on the site.

Roger Knight, Marshall’s chief executive officer, says: “We have confidence in the future of PAG. Jaguar has had a difficult time but it makes good money for us – it depends how you manage it. “As we need more space for each brand, it makes sense to bring them together on a new site where we will benefit from cost savings.”

The Land Rover dealership, on the opposite side of the cinema entrance to the new development, will be refurbished as a Toyota new retail concept site.

The existing Vauxhall and Toyota dealerships will be combined into a new Vauxhall centre.

Marshall will rebrand the Jaguar site and is talking to a number of manufacturers. The Volvo premises will probably be sold.