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TELSTRA GROUP LIMITED — Capital/Financing Update 2020
Aug 4, 2020
65927_rns_2020-08-04_15745691-d7e3-4250-ac34-ce44d03ddd83.pdf
Capital/Financing Update
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5 August 2020
The Manager
Market Announcements Office Australian Securities Exchange 4[th] Floor, 20 Bridge Street SYDNEY NSW 2000
Office of the Company Secretary
Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA
General Enquiries 03 8647 4838 Facsimile 03 9650 0989 [email protected]
Investor Relations Tel: 1800 880 679 [email protected]
ELECTRONIC LODGEMENT
Dear Sir or Madam
Telstra enters agreement to sell Clayton data centre
In accordance with the Listing Rules, I attach a market release for release to the market.
Authorised for lodgement by:
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Sue Laver
Company Secretary
Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556
Market Release
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Telstra enters agreement to sell Clayton data centre
– Wednesday 5 August Telstra today announced it had entered an agreement to sell its data centre complex in Clayton, Victoria, to Centuria Industrial REIT for $416.7 million.
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 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.
Telstra CEO Andrew Penn said the sale was another marker of progress on the company’s T22 strategy.
“As part of T22, we have an ambition to monetise up to $2 billion worth of assets to strengthen our balance sheet. This deal means we have now reached over $1.5 billion,” Mr Penn said.
“Data centres are an incredibly important part of the digital ecosystem and we continue to own and operate world-leading facilities in Australia and overseas."
The 3.2 hectare 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. The transaction will generate $416.7 million in proceeds. 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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Media contact: Jonathon Larkin M: +61 (0) 477 310 149 E: [email protected]
Investor contact: Ross Moffat M: +61 (0) 475 828 700 E: [email protected]
Reference number: 078/2020
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