Feb. 26 (Bloomberg) --Honeywell International Inc. (HON), the maker of products from thermostats to flight controls, agreed to buy a 40-acre campus in Morris Plains, New Jersey, to use as its new headquarters, scuttling plans to redevelop its current home.
Honeywell, currently based in Morris Township, plans to move in 2015, the company said in a statement today. It is buying the campus, which includes 475,000 square feet (44,000 square meters) of office space and a parking garage, from McNeil-PPC Inc., a unit of Johnson & Johnson (JNJ), according to the statement, which didn’t include financial terms.
The deal is subject to the approval of state tax incentives by the New Jersey Economic Development Authority. The state agency last year approved $40 million in tax credits for the company to redevelop its Morris Township campus, according to minutes of the meeting posted on its website. Honeywell has refiled its application to reflect its decision to move to Morris Plains, the company said today.
“This site represents a terrific opportunity for Honeywell,” Rick Kriva, Honeywell’s vice president of global real estate, said in the statement. “The new building can more than accommodate our current New Jersey employee base, allows for future growth, and will enable us to develop a truly world- class global headquarters while staying in Morris County and New Jersey.”
Honeywell had initially planned to stay in Morris Township, where it has been based for more than 50 years, and redevelop its campus as a mixed-use site with a combination of commercial, residential and lab space. The current 147-acre (59-hectare) headquarters is “underutilized, with more than 50 percent of the campus unoccupied and its buildings outdated, inefficient and costly to operate,” according to the statement.
Local opposition over two years and 50 public meetings in Morris Township prompted the company to rethink its plans and seek a new campus in another town, according to the statement.
“We could no longer accept additional delays and uncertainty,” Kriva said.
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