Telstra sells Melbourne data centre complex for $416 million

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Telstra sells Melbourne data centre complex for $416 million

Telstra has sold a data centre complex in Melbourne to Centuria Industrial real estate investment trust (REIT) for $416.7 million.

The complex is located 25km from the Melbourne CBD at the suburb of Clayton, and includes 10 buildings, a recently built 6.1 megawatt data centre, an adjacent 6.6 megawatt facility and an associated energy centre.

Included in the purchase price is a triple-net lease-back arrangement, meaning Telstra retains ownership of all IT and telecommunications equipment. The lease is for an initial 30 year period, along with two 10-year options for Telstra to extend the lease.

Telstra also retains responsibility for ongoing operations, building upgrades and repairs, future capex requirements and security.

Speaking on the sale, Telstra chief executive Andrew Penn said it was “another marker of progress” on 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,” Penn said.

“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."

Telstra expects the transaction will complete by the end of August 2020.

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