Telstra Selling Off $300-Million Pitt St Property
Telstra is preparing to sell its 16-storey telephone exchange building on Pitt Street for $250-300 million.
This offering will be the largest in Sydney CBD’s commercial real estate market since the COVID-19 crisis. Many vendors have delayed sales given the uncertainty surrounding the pandemic.
“We have commenced discussion on the future of the Pitt Street exchange, however, no decisions have been made,” a Telstra spokesperson told The Australian.
Transaction management services are reportedly being provided by Charter Keck Cramer, with Paul Roberts, Jonathan Vaughan and Graeme Russel, of Knight Frank, leading the sales campaign.
The property is being sold off under Telstra’s T22 cost-reduction strategy that was launched in 2018, which aims to monetise up to $2 billion worth of assets. Unlocking value in the company’s property portfolio is key to this plan.
One of the main pillars of the T22 plan is to create all-digital experiences. The Telstra location on Pitt Street has a data centre, office space and a broadcast operations centre.
Telstra is also in the process of selling its $400 million data centre in Melbourne.