Fisher & Paykel Healthcare Plans Major Campus Expansion in Auckland

Fisher & Paykel Healthcare, New Zealand’s most valuable company listed on the NZX, has unveiled ambitious plans for a significant new campus in Karaka, located on Auckland’s southern fringe. The company purchased the 105-hectare site in 2022, and recent rezoning applications submitted to the Auckland Council reveal a masterplan for 13 buildings that could potentially accommodate up to 18,000 employees.

According to broker Forsyth Barr, the plans, while still preliminary, indicate a development covering an area equivalent to 40 rugby fields. The company has stated that the project will unfold over a period of 30 to 40 years, but further details have been scarce until now. Forsyth Barr highlighted that these initial plans provide an early insight into Fisher & Paykel Healthcare’s long-term vision.

The company, valued at just under $22 billion, is preparing to announce its interim financial results on August 30, 2023, but has not provided immediate commentary on the campus project. It is anticipated that more information regarding the Karaka development will be available on the company’s website shortly.

Fisher & Paykel Healthcare is renowned for manufacturing non-invasive breathing aids utilized in both hospitals and home settings. It has been distinct from the whiteware brand Fisher & Paykel Appliances since 2001. As of June 2023, the company employed 7,535 staff, primarily at its headquarters in East Tamaki, which is nearing its capacity, and at a second manufacturing facility located in Mexico.

Forsyth Barr noted that the rezoning application reflects the company’s “truly long-term mindset,” a strategy that is said to be “virtually unmatched” within the New Zealand and Australian equity markets. The Karaka site was acquired for $275 million, although the company recorded a $98 million write-down in its book value last year.

The estimated cost to develop the campus in accordance with the proposed plans could reach approximately $5 billion, although Forsyth Barr suggested this figure might be on the conservative side. The development is expected to occur in stages, potentially extending to 2070, with the first building projected to be ready for occupation around 2030 or shortly thereafter.

As Fisher & Paykel Healthcare embarks on this major expansion, the implications for employment and economic growth in the Auckland area are substantial, marking a significant step forward for the company and its future endeavors in the healthcare sector.