>> Do you subscribe? FINANCIAL REVIEW Advertisement Telstra sells Melbourne data centre for $417m James Fernyhough Reporter Telstra says it has raised $1.5 billion through the sale of property assets since 2018, after selling a data centre in Melbourne for almost $420 million. RELATED QUOTES Aug 5, 2020 - 1.33pm TLS $2.80 -1.06% Save As first reported in The Australian Financial Review's Street Talk column, Share Telstra announced on Wednesday it had sold the centre in Clayton, 25 1 year 1 day kilometres from the Melbourne CBD, to Centuria Industrial REIT for $416.7 4.00 million. 3.50 made 3.00..... It will lease the facility back from Centuria on a 30-year agreement, with two 2.50 windows to extend that lease. Because of the long-term nature of the lease Nov 19 Feb 20 May 20 Aug 20 agreement, the transaction will not be counted as a sale for accounting Updated: Oct 6, 2020 - 4.03pm. Data is 20 mins delayed. purposes. View TLS related articles The telco said it would retain ownership of all equipment in the centre, as well as ongoing operations and responsibility for building upgrades and repairs, future capex requirements and security. Chief executive Andy Penn said: "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. 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." EPICFINANCIAL REVIEW Newsfeed & Centuria joint chief executives John McBain and Jason Huljich said, "Recent major sale and leaseback transactions with Arnott's, and now Telstra, are LATEST STORIES excellent examples of our ability to partner with these major, iconic Live Federal budget Australian businesses, and Centuria believes the data centre acquisition Treasurer Josh Frydenberg gets represents a significant investment in telecommunications infrastructure ready to deliver historic budget timed to coincide with a major upswing in demand for data storage." 7 mins ago Private equity More nimble company The Village Roadshow roller coaster may have more twists and turns The T22 plan, announced in June 2018, aims to transform the once- 12 mins ago monopolistic $34 billion telco into a more nimble and competitive company with a focus on mobile rather than fixed-line infrastructure. It included Opinion Chanticleer plans to cut 8000 jobs, create a less bureaucratic, more agile management Probe gets very personal, very quickly for Packer structure, and replace 1800 legacy products with 20 simpler ones. There will 33 mins ago also be a focus on mobile and 5G. Analysis Monetary policy It also outlined plans to free up liquidity by selling off some of its more RBA rate shift hangs on just one word valuable real estate assets, such as exchanges and data centres, and lease 36 mins ago them back. In August last year, Telstra sold a $700 million stake in a newly created SPONSORED property trust to a consortium of investors led by ASX-listed fund manager How Asia is weathering Charter Hall. the pandemic storm Sponsored Telstra retained a 51 per cent stake in the property trust, which was valued by Fidelity International at $1.43 billion and contains 37 of the telco's higher value exchange properties. Executive insights ignite debate Sponsored by Microsoft Type here to search O ENG 6:55
