Centuria Industrial REIT has acquired Telstra Data Centre in Clayton, Victoria for A$417 million (US$300 million) in a sale and leaseback transaction.
”The ASX 20 listed telecommunications company has committed to a 30-year lease. Post-acquisition, CIP’s weighted average lease expiry (WALE) will rise to 10.2 years,” said Centuria in the announcement.
Centuria Joint CEOs, John McBain and Jason Huljich, said, “Recent major sale and leaseback transactions with Arnott’s, and now Telstra, are excellent examples of our ability to partner with these major, iconic Australian businesses and Centuria believes the data centre acquisition represents a significant investment in telecommunications infrastructure timed to coincide with a major upswing in demand for data storage.”
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“Centuria has a dual strategy of executing corporate as well as direct real estate transactions. This business model has significantly enhanced the scope of Centuria’s platform, attracting a broader range of investors and generating more diverse revenue streams for the group. The Telstra data centre acquisition, our simultaneous expansion into New Zealand and the formation of Centuria Healthcare are good examples of this diversity.”
“Our business model remains extremely robust despite current conditions. Given our unlisted distribution network has been starved of quality property funds, initial soundings indicate that the $130 million Centuria Healthcare Property Fund, to be launched imminently, will be well subscribed. With deposit rates expected to remain low for the near term, we are confident this support will endure as further unlisted funds are launched.”