Telstra Renews Office Leases in Sydney and Melbourne

The telecommunications giant will re-occupy 115,000 square metres of offices space at Sydney’s 320 Pitt Street and 231 Elizabeth Street, and at Melbourne’s 242 Exhibition Street.

Telstra said the deal gives the company the opportunity to reduce its property footprint in both Melbourne and Sydney, in addition to deliveirng annual lease savings of $14 million from 2012.

As part of the agreement, Telstra said, Investa – which owns the three office buildings – will undertake a major refurbishment over the next two years.

“With the recent announcement of Telstra’s 13,000 square metre lease at Grocon’s QV development, Telstra can now look to consolidate its presence into fewer buildings in the Melbourne CBD.  This new deal also provides the opportunity for Telstra to consolidate its Sydney operations into the strategically located Pitt Street and Elizabeth Street buildings," Telstra property director Vito Chiodo said.
 
“This latest deal represents a big step forward in Telstra’s property portfolio transformation – part of the Telstra-wide transformation that has been under way since 2005.   Since July 2005, we have exited 113 commercial sites across Australia, reducing our NLA (Net Lettable Area) by over 199,000 square metres and delivering $77.8 million in annual lease savings.

In 2008, Telstra shelved plans to occupy a major office building in Melbourne’s outer south-eastern suburbs.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.

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