Mallesons Stephen Jaques has assisted Telstra to finalise the largest property leasing arrangement in Brisbane’s history - a 50,000 square metre, 10 year lease agreement with leading property developer Charter Hall. Following completion of an extensive expression of interest campaign, negotiations were completed within one week.

Noting this was a “landmark agreement”, Telstra Chief Executive Officer, Sol Trujillo, said: “We are consolidating our Brisbane-based people from eight buildings to two – located on one site in the CBD – enabling annual lease savings of $11.5 million dollars from 2009, delivering even better services to Queensland and improving the working conditions of our people.”

The Mallesons’ team was led by partner Andrew Flannery working closely with David Stewart, Telstra's Property Legal Counsel. The team helped drive detailed negotiations, drawing on the firm’s experience on similar deals.

Mr Flannery said: “In this case, the legal environment was known. However, a very commercial approach was required to achieve success in a very tight time frame.”

“We were able to fully document the deal in a fraction of the time it would normally take for such a complex transaction. Significant cost savings, efficiencies and synergies were delivered by the intense negotiation parameters set by Telstra. This was a great result to put the whole of Telstra's Brisbane operation into one location in the heart of the CBD,” he said.

Telstra's Director of Property, Vito Chiodo said: "One of the things that really impressed me about Andrew and David on this deal is that they were on top of the detail but could still see the bigger commercial picture - and were able to think strategically." 

Construction work on both buildings on the site will begin in 2007. Developer Charter Hall will build the new 30-storey, 41,000 square metre tower at 275 George Street, of which 32,000 square metres will accommodate around 2,500 Telstra office staff from late 2009. The adjoining 26,000 square metre Northbank Plaza, located at 69 Ann Street, will be refurbished, with Telstra occupying 18,000 square metres. This will house around 2,000 Telstra call centre staff from 2008.