Telstra sells Vic data centre complex for $416M

Telstra sells Vic data centre complex for $416M

Will still keep IT and telco equipment and operations

Andrew Penn - CEO, Telstra

Andrew Penn - CEO, Telstra

Credit: Telstra

Telstra has sold its data centre complex in Clayton, Victoria, for $416.7 million to Centuria Industrial REIT.

The sale involves a triple-net lease-back arrangement, meaning the telco will still retain ownership of all IT and telecommunications equipment, ongoing operations, future capital expenditure requirements and security, as well as building upgrades and repairs.

The lease will run for 30 years with two 10-year extension options. 

The complex itself spans 3.2 hectares, featuring 10 buildings including Telstra’s new 6.1MW data centre and its adjacent 6.6MW data centre, and associated energy centre. 

Telstra CEO Andrew Penn said the sale was another marker in its T22 strategy, as it realises its ambition to monetise up to $2 billion worth of assets to strengthen its balance sheet. With this deal, he added, it has reached $1.5 billion.

“Data centres are an incredibly important part of the digital ecosystem and we continue to own and operate facilities in Australia and overseas,” Penn said. 

The telco first laid out its T22 strategy in June 2018, at the time revealing it will slash up to 8,000 jobs in the next three years as part of the strategic review, as it plans to simplify its operations and product set and reduce costs. 

In March Telstra froze its headcount reduction program for six months as the coronavirus pandemic created unprecedented demand on its network and services.

The telco said it intended to hire 1,000 contractors to deal with an influx of calls to its customer service team as social distancing measures place added pressure on Australia’s internet networks.

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