Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Telstra (ASX:TLS) announces $417 million asset sale

Telstra (ASX: TLS) has announced a $417 million asset sale of its Clayton data centre to Centuria Industrial REIT (ASX: CIP).

Telstra is Australia’s biggest telco company and Centuria industrial REIT is a property business that owns 48 industrial buildings like warehouses.

Telstra’s big asset sale

Telstra has announced the sale of its data centre complex in Clayton (Victoria) for $416.7 million.

The site is 25km from the Melbourne CBD and it includes 10 buildings including Telstra’s newest 6.1MW data centre and the nearby 6.6MW data centre and the linked energy centre.

The sale includes a triple-net lease-back arrangement which means Telstra will retain ownership of all the IT and telco equipment as well as ongoing operations and responsibility for building upgrades and repairs, future capital expenditure and security.

Telstra’s lease is for an initial period of 30 years with two 10-year options to extend the lease.

Telstra CEO Andrew Penn said the sale was part of the company’s ‘T22’ long term 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 no reached over $1.5 billion. 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.”

Summary

This seems like a good move for both businesses involved. Owning the building doesn’t seem necessary for Telstra, so it can redeploy that capital somewhere else. It’s a good sale price with interest rates being so low.

For Centuria Industrial REIT, it gets a great asset with a long term quality tenant. It’s planning to do a capital raising to fund the deal.

However, I’m not sure I’d buy either of them for my portfolio. I’d rather go for other ASX dividend shares with better growth prospects including WHSP (ASX: SOL) which has plans to build regional data centres.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

At the time of publishing, Jaz owns shares of WHSP.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.