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- Australian telco giant Telstra (TLS) has entered an agreement to sell its data centre complex, located in Clayton, Victoria
- The company will sell the complex to Centuria Industrial Real Estate Investment Trust (CIP) for $416.7 million
- Telstra will retain ownership of all IT and telecommunications equipment, and maintain responsibility for ongoing operations, building upgrades, and repairs
- The transaction for the data centre complex should be complete by the end of August 2020
- Today, Telstra shares are up 0.74 per cent to trade for $3.43 per share
Australian telco giant Telstra (TLS) has entered an agreement to sell its data centre complex, located in Clayton, Victoria.
The complex, which measures approximately 3.2 hectares, is only 25 kilometres away from Melbourne’s central business district (CBD). It consists of ten buildings, including the company’s newest 6.1-megawatt data centre, the adjacent 6.6-megawatt data centre, and the associated energy centre.
Telstra intends to sell the complex to Centuria Industrial Real Estate Investment Trust (CIP) for $416.7 million.
The sales agreement includes a triple-net lease-back arrangement, which will allow Telstra to continue operating in the complex. Under the agreement, the company will retain ownership of all IT and telecommunications equipment on the property.
Telstra will also maintain responsibility for ongoing operations, building upgrades and repairs, future capital expenditure requirements, and security.
The lease will have an initial period of 30 years, although Telstra will have two opportunities to extend the lease by ten years each time.
The transaction for the data centre complex should be complete by the end of August 2020.
Telstra’s CEO, Andrew Penn, called the sale another marker of progress for the company’s T22 strategy.
“As part of T22, we have an ambition to monetise up to $2 billion worth of assets to strengthen our balance sheet. This deal means we have now reached over $1.5 billion,” Andrew explained.
“Data centres are an incredibly important part of the digital ecosystem, and we continue to own and operate world-leading facilities in Australia and overseas,” he said.
News of this sales agreement saw the company’s share price drop 2.3 per cent on August 5.
Today, Telstra shares are up 0.74 per cent to trade for $3.43 per share at 11:59 am AEST.
