Hosting services provider Webcentral has announced its operations and staff have moved into 5G Networks’ available office space after giving up its Sydney office.
The company said it executed a formal surrender deed for levels 22 and 23 at 680 George St. in Sydney, Webcentral’s former Sydney office.
The surrendered office space is expected to deliver $4 million in annualised savings, or $2.2 million nett annualised saving after sublease income.
Webcentral will also receive bank guarantees issued to the landlord in relation to the property leases, which is a total of $1.74 million.
The net surrender fee payable by Webcentral is around $200,000 and the lease adjustment will be backdated to 1 April 2021.
Webcentral, formerly known as Arq Group and Melbourne IT, was acquired by telecommunications services provider 5G Networks in 2020, after the company underwent a months-long strategic review that started in September 2019.
Some of the companies’ businesses were sold off piece by piece before being sold to 5G Networks, including its Enterprise business for $35 million to Sydney-based investment firm Quadrant Private Equity, which included the use of the Arq Group name.