The sale includes a triple-net lease-back arrangement.
Singapore-listed and Australia-based telecommunication firm Telstra has entered an agreement to sell its data centre complex in Clayton, Victoria, to Centuria Industrial REIT for $410.16m ($416.7m), an announcement revealed.
The sale includes a triple-net lease-back arrangement, which means 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 firm assured that the sale has no impact for Telstra customers.
The lease is for an initial period of 30 years with two 10-year options for Telstra to extend the lease. The 3.2 ha complex is just 25km from the Melbourne CBD and incorporates 10 buildings, including Telstra's newest 6.1MW data centre and its adjacent 6.6MW data centre and associated energy centre.
The transaction is expected to be completed by the end of August. Due to the long tenure of the lease-back, the transaction will not be treated as a sale under accounting standards, therefore no accounting gain will arise.
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