Stockland has entered into a put and call option deed with Johnson & Johnson Medical Pty Ltd to acquire the healthcare company’s 1 – 5 Khartoum Rd, Macquarie Park office building.
Stockland and the Johnson & Johnson Family of Companies in Australia have also committed to working towards an agreement to design and deliver a new 10,000sqm head office for Johnson & Johnson in Macquarie Park, which will bring together the company’s 820 office based employees from across Sydney.
Stockland Group Executive and CEO Commercial Property, Louise Mason, said “We’re delighted to confirm this acquisition, which significantly increases our presence in the rapidly growing and resilient Macquarie Park office market.
“The transaction aligns with our broader strategy to up-weight our workplace and logistics portfolio and build on our $4.4 billion development pipeline, particularly through Sydney and Melbourne opportunities that enhance long-term income and valuation resilience.
“This acquisition is another example of the momentum we’re building in the implementation of this strategy, with retail divestments in the back half of 2019 facilitating a series of acquisition and development opportunities in our workplace and logistics portfolio within important markets like North Sydney, Macquarie Park and the Sydney CBD.
“The Macquarie Park business precinct is already a powerhouse of employment and economic growth underpinned by pharmaceuticals, health, technology, government and education and is predicted to become NSW’s second largest economy in the coming years,” Ms Mason said.
The four hectare site sits adjacent to Stockland's M_Park commercial office project, which is expected to commence later in 2020 and creates a potential consolidated development opportunity in excess of $1.5 billion.
Design for the new Johnson & Johnson Family of Companies head-office, Stage three of the precinct, is already progressing, with a development application anticipated to be lodged in late 2020.
Ms Mason continued: “This intent from J&J to remain within Macquarie Park is an indication of the strength and appeal of this technology, health and innovation precinct.
“We’re delighted at the prospect of being able to create a state-of-the-art home for them within a contemporary workplace precinct that will rival some of Sydney’s best.
“We have worked closely with the City of Ryde on the M_Park project and we look forward to working with them and our local stakeholders to bring our vision for the future of work to life,” Ms Mason said.
Stockland received development approval for the first stage of the M_Park precinct, a $123 million 18,000 square metre office, co-working and retail building in December 2019, with construction anticipated to commence later this year.
M_Park is located in the heart of the Macquarie Park commercial precinct, well connected by road and rail with the new metro, Macquarie University Railway Station and high-frequency bus services within walking distance, as well as direct connections to the M2 Motorway via Talavera Road.