Apple Inc. (NASDAQ:AAPL) has moved a step closer to its expansion plans in Austin, Texas, by acquiring three large patches of land for $304 million. Records at Travis County Clerk’s Office show that the deal was closed on June 20, but the price and total square footage was not disclosed.
The 650,000 square feet of land that Apple purchased, is located exactly in front of its existing Austin headquarters. Earlier, the land was owned by McShane Development Co. LLC, through its Riata Vista LP entity. Apple's expansion plan has been on cards since March, when Gov. Rick Perry announced that Apple will invest $304 million in Austin, and add 3,600 new jobs to the existing workforce of 3,100 employees over the next decade.
"Apple is known for its bold innovation and game-changing designs, and the expansion of their Austin facility adds to the growing list of visionary high-tech companies that have found that Texas' economic climate is a perfect fit for their future, thanks to our low taxes, reasonable and predictable regulations, fair legal system, and skilled workforce," Gov. Perry said. "Investments like this further Texas' potential to become the nation's next high-tech hub."
In exchange for Apple's commitment, the state of Texas has offered it an investment of $21 million over the next decade through its Texas Enterprise Fund (TEF). The City of Austin has also proposed a grant investment of $8.6 million, if Apple meets certain performance metrics related to hiring and infrastructure development.
Apple Inc. (NASDAQ:AAPL) received approval from Travis County Commissioners Court in May. Though the company's Austin campus focuses on administrative functions and customer support, it also houses chip design facility. The chip factory of Samsung, which underwent expansion to meet the growing demands, is also located in Austin. Samsung is the sole supplier of chips to Apple's iOS devices.
Also, Apple is planning to expand its Cupertino headquarters with the development of new Spaceship campus. This four story building will be spread over 2.8 million square feet, and hold 13,000 employees. There will also be a 300,000 square feet research facility, and a 1000-seat corporate auditorium.