Fisher & Paykel Healthcare (FPH) has entered into an agreement to purchase a large chunk of land south of Auckland City for a second set of offices and research facilities.
An artist's rendering of Fisher & Paykel Healthcare's new Karaka site once development is completed. Photo: Supplied
The health equipment manufacturer said the $275 million deal to buy the 105-hectaresite in Karaka from Karaka Meadows Ltd would be funded through a combination of cash and existing debt facilities.
FPH chair Scott St John said the new campus would complement its existing site in East Tāmaki, which was nearing capacity.
"We have consistently signalled the importance of long-term infrastructure planning to help us deliver on our sustainable, profitable growth strategy and our aspirations of doubling constant currency revenue every five to six years. In order to take advantage of the opportunities ahead of us, we need more space."
St John said the acquisition reaffirms its commitment to keep its research and development, as well as manufacturing operations in in New Zealand.
The company said development of the new site would take place over 20 to 30 years, with earthworks occurring over the next five years.
The second site would be 25km from the existing East Tamaki campus and was about 40km south of the city.
FPH chief executive Lewis Gradon said the Karaka campus would boost the local area, as it would employ a number of people working in research and development, manufacturing and other related roles.
"We note the separate plans that are underway to develop adjacent areas with improved transportation links and new housing developments, and we firmly believe that our campus will be a positive addition to the area."
"We are confident it will be an attractive location for employees to be base."
FPH would pay a 10 percent deposit up front and the balance would be paid on staggered dates once the company had received the green light from the OIO.