Telstra (ASX:TLS) sells data centre to Centuria Industrial REIT (ASX:CIP) for $416.7 million

Company News

by Kathy Skantzos

Telstra (ASX:TLS) has entered an agreement to sell its data centre complex in Clayton, Victoria, to Centuria Industrial REIT (ASX:CIP) for $416.7 million.

Telstra will retain ownership of all IT and telecommunications equipment, as well as ongoing operations and responsibility for building upgrades and repairs, future capex requirements and security.

The sale has no impact for Telstra customers, the telco said.

The lease is for an initial period of 30 years with two 10-year options for Telstra to extend the lease.

Telstra CEO Andrew Penn said the sale was another marker of progress on the company’s T22 strategy to monetise up to $2 billion worth of assets.

The deal brings Telstra’s balance sheet to over $1.5 billion.

Shares in Telstra (ASX:TLS) are trading 1.15 per cent lower at $3.44. 

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.