MONEY

AstraZeneca, Chase confirm office site deal

Nichole Dobo
The News Journal
  • The property is split by Del. 141, with a bridge connecting what the firm calls its north and south campuses.
  • The south campus houses two buildings, a garage, parking lot, basketball and tennis courts, and other amenities.
  • In late March, Delaware approved a grant to the bank of up to $1.5 million to help pay for more than $50 million in capital investment.

JPMorgan Chase Bank has signed an agreement to buy AstraZeneca's south campus in a deal expected to close next month, giving the bank two buildings and 357,000 square feet of additional office space in northern Delaware.

Bank officials on Tuesday would not say how they plan to use the space in Fairfax, but the growing state employer expects to add 500 jobs this year.

Media reports in late February cited unnamed sources who pegged the sale price at a minimum of $44 million. Company officials declined to confirm the deal at the time or say whether the bank was a potential buyer.

A few lines in an otherwise routine document filed April 4 in the New Castle County Recorder of Deeds office served as the first on-the-record notation of a deal. It lists JPMorgan Chase as the "equitable owner" of AstraZeneca's south campus.

Asked for comment Tuesday, AstraZeneca and JPMorgan Chase officials confirmed the sale agreement, but provided no further details aside from the closing time frame.

The south campus houses two buildings near Del. 141, also known as Powder Mill Road, along with a garage, parking lot, basketball and tennis courts, and other amenities. AstraZeneca officials have said they plan to move employees out of the property by the end of this year as the British-based drugmaker trims its workforce at its Delaware offices for the Americas.

The AstraZeneca property is split by Del. 141. A bridge connects what the firm calls its north and south campuses.

The document filed in the county deeds office updates the legal responsibilities and status of the bridge if AstraZeneca sells the south campus. It also names the expected buyer: "Assuming closing in accordance with the terms of that certain purchase and sale agreement dated March 28, 2014 ('the Sale Agreement'), JPMorgan' Chase Bank, N.A. ('JPM'), shall become owner of the south campus, and shall be the south campus owner effective as of the closing."

Gov. Jack Markell said in a statement Tuesday he was pleased JPMorgan was lined up to buy the property.

"The purchase by JPMorgan Chase helps ensure that this centrally located property will continue to be an engine for economic growth in our region," Markell said.

"JPMorgan Chase is our largest financial sector employer and has been growing in Delaware in the past several years. We look forward to continuing to work with them to create economic opportunities for Delawareans."

Last year, JPMorgan Chase bought two office buildings in downtown Wilmington the bank had leased for close to a decade in a deal estimated to be worth about $87 million. The bank employs more than 7,500 in the state and expects to add about 500 jobs this year.

In late March, the Delaware Economic Development Office approved a grant of up to $1.5 million to help pay for more than $50 million in capital investment the bank plans to make in Delaware. It was not disclosed where JPMorgan intends to make that investment. The bank has not said what it intends to do with the AstraZeneca property.

AstraZeneca built its North American headquarters in Delaware in the late 1990s. State leaders lured the company to the First State with a hefty financial incentive package negotiated under Gov. Tom Carper's administration. It included "$10.7 million in free land, $8 million in cash and $70 million in road improvements," according to University of Delaware professor emeritus William W. Boyer in his book, "Governing Delaware."

In March of 2013, AstraZeneca announced plans to lay off or relocate about 1,200 employees who had been based in Delaware. AstraZeneca employed about 3,500 people in Delaware in 2011.

In August, the company sold the 15-story Rollins Building, the major tower along U.S. 202 north of Wilmington, for about $10.5 million to a firm affiliated with the owner of Applied Bank.

"AstraZeneca will continue to have a strong presence in Wilmington, its North America commercial headquarters," spokeswoman Alisha Martin said in an email.

Contact Nichole Dobo at 324-2281 or ndobo@delawareonline.com. On Twitter @NicholeDobo.