Drug giant picks NJ for 670,000 s/f HQ.

sanofi-aventis, the world's third largest pharmaceutical company, has ended months of speculation over the location of its US headquarters announcing a deal to lease the entire 670,000 s/f former AT&T campus in Bridgewater, New Jersey.

sanofi had been weighing the options between sites in both New York and New Jersey since its $65 billion merger with aventis earlier this year.

On Monday, the company confirmed it had signed an agreement to move its US headquarters from its current location at Somerset Corporate Center in Bridgewater to 55 Corporate Drive, also in Bridgewater, to combine the 3,000-strong workforce into one location and to support future growth.

"The new site was chosen because it can accommodate our business needs for a more flexible and integrated space," said Tim Rothwell, president and CEO of sanofi-aventis U.S.

"In addition, we wanted to remain in the Bridgewater vicinity to accommodate our more than 3,800 sanofi-aventis employees from various divisions who currently work in the area. The site was a perfect choice."

A joint venture headed by The Gale Company and including investment partners SL Green Realty Corp. and a client of Principal Real Estate Investors, bought 55 Corporate Drive from AT&T Corporation earlier this year. The three-building, 150-acre complex is situated at the crossroads of Route 206 and IS 287 and 78.

"On behalf of The Gale Company and our entire venture, we are extremely proud to have been able to satisfy sanofi-aventis' need for a more flexible and integrated space," stated The Gale Company chairman Stan Gale.

Mark Yeager, president of The Gale Company, added, "This lease transaction is an affirmation of New Jersey's continued leadership in the pharmaceutical sector and is a testament to our state's position as a mecca for Fortune 500 corporations. We congratulate the local Bridgewater community, Mayor Patricia Flannery, township staff and officials on the state level for working closely with sanofi-aventis to successfully secure one of the world's leading corporations."

Robert Donnelly and Gil Medina of Cushman & Wakefield's New Jersey office advised sanofi-aventis in the transaction.

The drug giant currently maintains three sites in Bridgewater; Somerset Corporate Center, Bridgewater Crossings and the Science & Medical Affairs (S&MA) campus facility.

According to Donnelly, sanofi-aventis looked at "a handful" of alternative sites before opting for 55 Corporate Drive. "None of the alternatives turned out to be as good a fit as this did, given its proximity to the other facilities," he said.

Donnelly, vice chairman of Cushman & Wakefield in New Jersey, said Paris-based sanofi started looking for space to create a consolidated North American HQ last year following its merger with aventis.

He said the deal was "a very important statement" for the state of New Jersey adding, "For the third largest pharmaceutical company in the world to locate in New Jersey is a very big positive for the state economy, labor and real estate markets.

"It is certainly one of the biggest deals of the year--a lease like this maybe happens just once in a year."

Bridgewater Mayor Patricia Flannery issued a statement calling the announcement "an extraordinary milestone" in the community's history.

"Sanofi-aventis' decision to locate to 55 Corporate Drive re-affirms Bridgewater's outstanding appeal as a wonderful place to live, work and visit. Our thanks to sanofi-aventis and The Gale Company for recognizing the enormous strategic benefits of Bridgewater."

Financial details of the agreement were not disclosed.

The move is scheduled to begin in December 2005. The current plans call for a total reconfiguration of the interior space of the existing buildings. Full occupancy of the approximately 670,000 square feet is expected by the end of 2006.

Following completion of the move, all U.S. pharmaceutical operations employees will be located at the new site. Somerset Corporate Center will house an expanded Sales Training Center, the Northeast Regional Sales Office, and Global employees.