Aetna’s move to NYC up in the air as CVS merger progresses
Company planned move to Meatpacking District
As Aetna moves forward with its proposed $69 billion merger with CVS Health, it’s unclear if the insurance giant will abandon plans to relocate its headquarters to New York City.
Aetna planned to move 250 employees from its Hartford, Connecticut, headquarters to Aurora Capital Associates and Vornado Realty Trust’s 61 Ninth Avenue in the Meatpacking District. The deal would cost $84 million but would include $34 million in incentives from city agencies. To receive a property tax abatement, Aurora Capital and Vornado would likely structure the deal with Aetna as a triple-net lease or a leasehold condo, The Real Deal reported in August.
Aetna finalized a deal to lease the entire office portion of the building, 145,000 square feet, earlier this year.
But in a conference call on Monday, the company wouldn’t say whether or not the merger would impact the move, instead stating that “all real estate locations will be evaluated … during the integration planning process,” the Hour reported. CVS is headquartered in Rhode Island.
On Tuesday, the Wall Street Journal reported that CEO Mark Bertolini would get a $500 million payout from the merger. [The Hour] — Kathryn Brenzel