Answering the call

Telstra has signed a 12-year lease for a complex at 16–18 Mort Street in Canberra. The space will be used to consolidate parts of Telstra's business and to house a team delivering specialist telecommunications services to the federal Department of Defence.

The building, owned by Investa Office Fund, will offer about 13,250 square metres of office space and is being fitted to accommodate more than 1,000 people. Fit-out work is expected to be finished by early next year.

The lease runs for 12 years. Telstra plans to use the space to consolidate its operations in Canberra and to provide accommodation for a specialist team set up to deliver telecommunications services to the Department of Defence.

Yes. The Mort Street space will house a team delivering specialist telecommunications services to the Department of Defence. Telstra also recently signed a separate six-year, $1.1 billion contract with Defence to provide telecommunications services.

Investa Office Fund owns the Mort Street building. For property investors, securing a long-term, creditworthy tenant like Telstra can reduce vacancy risk and support the asset's income profile.

Telstra’s property director Vito Chiodo said the group is constantly looking to 'remix' its large portfolio and that leasing deals like this help diversify that mix. He also noted this will be the biggest project the property team has undertaken in Canberra and the largest for the company so far this year.

J.P. Morgan analysts said the Mort Street vacancy had been a market concern and described securing a 12-year lease to a high-quality tenant like Telstra as a positive development.

Everyday investors may find this relevant because a long-term lease to a major tenant can improve an asset owner’s income stability (Investa Office Fund), while Telstra’s move to house a defence-focused team links to its recent $1.1 billion, six-year Defence contract—both signals of secured work and potential revenue stability highlighted by market analysts as positive.