Telstra CFO David Moffatt has hinted that the $570 million raised through the sale of seven of its main buildings may be reinvested in wireless data and broadband technology.
Telstra today said it was offloading the buildings, which add up to nearly a quarter of its total floor space, in a cash sale to Investa Property Group. Telstra will rent back 97 per cent of the space from the sale, which is expected to yield about $100 million in net profits for the telco in 2002/03.
Moffatt listed wireless data and broadband technology as likely recipients of the funds.
He said the sale meets all "commercial objectives" and continues the telco's focus on capital efficiency. "[It] is something that will allow us to reinvest the proceeds in our core business.
"We get a good return out of investing in our core business so that's where we want to put the capital."
The telco's core services in the Bush would also benefit from the proceeds.
"In order to make them more productive we've got to invest in our core infrastructure and that means all Australians, not just folks in the city.