Investa today announced that Telstra will retain its Melbourne Headquarters at 242 Exhibition Street Melbourne (the ‘Building’) for another 11 years and 5 months, cementing the location as the core of its operations in Australia.
Jointly owned by Investa Commercial Property Fund (ICPF) and Investa Office Fund (IOF), the Building has been Telstra’s headquarters in Melbourne for more than 25 years.
Key transaction details include:
- Total lease over 63,372 square metres, comprising 59,676 square metres of office space and 3,696 square metres of conference, training and ancillary areas;
- Lease term of 11 years and 5 months commencing in June 2020;
- Investa will undertake and/or fund a significant building upgrade including a $12.5 million lift renewal, major foyer upgrade and extensive refurbishment of tenancy areas;
- The lease takes the building’s WALE to more than 15 years and maintains its fully occupied status.
Investa Group Executive, Michael Cook said: “We are very pleased Telstra has decided to remain at 242 Exhibition Street until 2031. The decision is a strong endorsement of the quality of the location and the building’s ability to meet the needs of the Telstra business over the long term.
Our Melbourne team, led by Meagan Smart, worked proactively with Telstra to develop a solution that was both competitive and flexible, and which would enable Telstra’s innovative Future Ways of Working model to be integrated well before their original expiry date.”
242 Exhibition Street is a 65,717 square metre building located on the corner of Exhibition and Lonsdale Streets which was purpose built for Telstra in 1991. Synonymous with the telecommunication company’s identity in Melbourne, the new lease allows Telstra to continue to leverage the significant investment it has already made in the Building.
John Romano, Executive Director of Telstra Property said: “We are looking forward to continuing our partnership with Investa and transforming our workplaces for our people. Extending our lease term positions 242 Exhibition Street as the collaborative hub for our Melbourne based team.”
Michael Cook added: “Telstra is a key tenant of Investa and we are constantly looking at how we can adapt to their evolving needs.
In the future, we will continue to focus on helping Telstra ensure that 242 Exhibition Street remains a technology and innovation destination, where it can showcase its services and create a thriving workplace for Telstra people.”