Telstra commits to landmark Adelaide office
Telstra will relocate its Adelaide headquarters to Charter Hall’s 60 King William Street.
The 10 year deal is for 6000 square metres across two upper levels with a balcony.
It comes 11 months since the landlord pre-committed Services Australia – formerly known as the Department of Human Services – to 28,500 sqm, also for a decade.
Telstra rents Charter Hall owned offices at Sydney (275 George St) and Brisbane (69 Ann).
The telco’s national headquarters, 242 Exhibition St in Melbourne, is also held by the manager.
Building 90 per cent full
The King William St office is replacing the former Southern Cross Arcade, which Charter Hall acquired last August from a consortium including prominent local investor Peter Tunno.
Over 15 storeys, it will contain 39,000 sqm of lettable space, with average c3000 sqm floorplates.
The ground level will be fit out with retail, including restaurants, and connect to the James Place mall.
Due for completion in mid-2023, the asset, incorporating the Sands & McDougall building, will be Adelaide’s biggest by area.
Enabled for zero emissions, the end value has been mooted at $450 million (story continues below).
“This agreement brings Telstra’s total leased space with us to more than 130,000 sqm across Australia, underpinning the strength of our partnerships and reflecting Charter Hall’s ability to deliver high quality, technology enabled buildings,” chief executive officer of the landlord’s Office division, Carmel Hourigan, said.
Last week we reported Melbourne investor Pelligra outlaid $25.5m for 80 King William St – next door to the Charter Hall office – also from Mr Tunno.
Eighteen months investigating move
Telstra said it has been investigating a replacement Adelaide base for 18 months.
“Our new…office will take the best parts of our other office environments, including desks that our people can book on demand, and introduce new ways of working including larger and more open collaboration and meeting spaces, where teams can come together in a modern and flexible environment,” Telstra Property Transaction principal, Doug Hall, said.
“This will be an opportunity for Telstra to put into place an office of the future, based on hybrid and flexible working and with spaces for true collaboration and team interaction,” he added.
JLL’s Michael Greene advised Telstra.
Colleague Tom Budarick with CBRE’s Andrew Bahr represented Charter Hall.
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