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Telstra Sells $416M Data Centre In $2B Monetisation Pursuit

Telstra has sold its Clayton (VIC) data centre for $416.7 million, as it pursues a strategy to strengthen its balance sheet with the monetisation of $2 billion worth of assets.

“The deal means we have now reached over $1.5 billion,” said Telstra Chief Executive, Andy Penn.

The data centre was sold to Centuria Industrial REIT, with such facilities tipped to become a much larger portion of Australia’s property sector.

Analysts assert demand for data centres has skyrocketed, prompt by work-from-home conditions, remote working and increased data demand during the coronavirus pandemic.

Industrial property is also deemed to be one of the few segments relatively unscathed during the economic impact of COVID19.

The data centre deal involves a lease-back arrangement, with Telstra retaining ownership of all IT and telecom equipment, and having responsibility for building upgrades, repairs, security and more.

The lease is an initial period of 30-years, with two 10-year options for extension.

Telstra states the sale will not have an impact on customers.

The monetisation strategy forms part of Telstra’s T22 strategic shift, which also included the culling of a quarter of its workforce.

Telstra CEO, Andy Penn

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