This article is from the Australian Property Journal archive
TELCO giant Telstra has signed a new 11.5-year lease to 2031 at 242 Exhibition St in Melbourne’s CBD, owned by the Investa Commercial Property Fund (ICPF) and Investa Office Fund (IOF).
The building has been Telstra’s headquarters in Melbourne for more than 25 years and its lease covers 63,372 sqm, comprising 59,676 sqm of office space and 3,696 sqm of conference, training and ancillary areas.
The new lease term of 11 years and five months commences in June 2020.
As part of the new agreement, nvesta will undertake a $12.5 million refurbishment of the building, including a major foyer upgrade.
Investa group executive Michael Cook said the lease takes the building’s WALE to more than 15 years and maintains its fully occupied status.
“We are very pleased Telstra has decided to remain at 242 Exhibition St until 2031. 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,” he added.
242 Exhibition Street is a 65,717 sqm building located on the corner of Exhibition and Lonsdale Streets which was purpose built for Telstra in 1991.
“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,” Telstra Property executive director John Romano said.
Australian Property Journal
