Sanofi-Aventis Will Keep HQ in NJ

Aventis itself was the result of the merger, five years ago, of Hoechst Marion Roussel and Rhone-Poulenc. Between its 400,000-sf headquarters location, amounting to half of the Bridgewater Crossings office complex here, and a nearby R&D campus, the company has been occupying nearly a million sf in this Somerset County township, with a total of more than 3,000 employees. Sanofi's presence in the tri-state region includes 600 employees in a regional office in New York City.

And the merged Sanofi-Aventis, the world's third largest pharma company after Pfizer and GlaxoSmithKline, will apparently continue to occupy that space, easing fears in a submarket with a nearly 30% class A office vacancy rate that yet another large block would be freed up. A company spokesperson has confirmed the decision, but would provide no further details. Sources say company employees have been told of the decision.

According to sources, the State of New Jersey will provide an incentive package to keep the company here. Negotiations with Sanofi-Aventis were said to have been headed by state treasury secretary John McCormac and assistant state treasurer Daniel Levine. State officials confirm the deal, but declined to provide details.

Aventis has already been the beneficiary of two active Business Employment Incentive Program grants that were to have paid the company nearly $26 million over a 10-year period based on the 3,000 jobs created here. While state officials would not confirm the details, sources say Sanofi-Aventis will take advantage of changes in the BEIP law that extend the grants, which consist of a rebate based on 80% of personal income taxes collected, to companies that retain jobs.

And Sanofi-Aventis will likely also qualify for sales tax exemptions relating to the state's Business Relocation Retention Assistance Grant program. That incentive would fall into place if the company relocates its 600 New York City employees here and/or builds new facilities to house them.