Telstra to sell Pitt Street exchange

Telstra can expect $250-$300 million from the Pitt Street exchange.

Telstra can expect between $250-$300 million from the sale of a Sydney CBD telephone exchange.

At 76-78 Pitt Street, the 16-level broadcast operations centre was renovated four years ago.

The vendor is going to offer the asset with a 10-year leaseback, according to this item with more details in The Australian.

In March it was reported Telstra, via investment house UBS, would also offload a $400m data centre on 3.2 hectares in Melbourne’s Clayton. With 10 buildings, including two which were recently constructed, this is also being marketed as a long-term investment.

In its T22 strategy two years ago, the business flagged plans to sell about $2 billion in real estate.

Charter Keck Cramer’s Paul Roberts, Jonathan Vaughan and Graeme Russell, with Knight Frank, are expected to launch a campaign for the Pitt Street property in coming weeks (story continues below).

Telstra exchange well connected inside and out

Completed in 1976, the 24,000 sqm brutalist complex occupies a 1500 sqm site between Martin Place and Hunter Street.

Opposite the 115 Pitt Street office tower, it is also near Martin Place metro station, under construction on the south side of Hunter between Castlereagh and Elizabeth streets.

In February, Macquarie sold a 29-storey, 30,000 sqm office at this site to ISPT for $950m (coincidentally, until 2010 the purchaser owned a commercial asset, 55 Hunter Street, razed to make way for this infrastructure project).

Last week Oxford Properties unveiled plans for Sydney CBD’s first major build-to-rent project, rising 39 storeys, at the south east corner of Pitt and Bathurst streets – atop an entrance to a Pitt Street metro station which is also taking shape.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco