Investa Office has this week finalised one of Sydney's largest leasing transactions this calendar year, signing Telstra to more than 30,000 square metres at 400 George Street, Sydney.
Telstra's new lease effectively combines and streamlines six leases, with terms from seven to eleven years, increasing the Weighted Average Lease Expiry (WALE) of the building from 3.6 to 7.3 years and extending Telstra’s occupation of the building to 2025.
Telstra will occupy 30,165 square metres of A Grade office space over 17 levels and a ground floor retail space. A multi-million dollar refurbishment is planned for both the retail and office floors with construction commencing in early 2014.
Michael Cook, Group Executive, Capital Transactions, Commercial Development & Leasing, Investa Office said: “We are very pleased that Telstra will maintain their Sydney headquarters at 400 George Street for the next twelve years. In a competitive office market, this transaction reflects positively on the quality of the building, and the ability of the Investa Office team to deliver a lease structure and space solution that meets Telstra’s business needs now and into the future.”
400 George Street is a 51,223 square metre, 31 level office tower and retail arcade located in the centre of the Sydney CBD. Jointly owned by Investa Property Trust, Investa Commercial Property Fund and M & G Asia Property Fund, the building provides large, predominantly column-free floor plates and good access to natural light.
Kate McKenzie, Telstra’s Group Managing Director, Innovation Products & Marketing, said Telstra had plans to transform the 400 George Street building as part of a project that would create a vibrant technology precinct where customers could explore a future that was digital, mobile and connected.
“We’ve got a complete transformation in mind; we want the Telstra building to be a major part of an emerging technology and innovation hub in this part of the Sydney CBD, a place where people can go to experience all of the exciting new communication products and services that are shaping our lives now and will shape our future,” said Ms McKenzie.