ResidentialLindsay SaundersTue 04 Aug 26
Telstra Offers Melbourne Bayside Exchange Site to Market
Another strategically located telecommunications exchange has come to market as Telstra continues to offload the assets, this time in Melbourne’s bayside.
The 974sq m property at 22A Abbott Street at Sandringham Village is being offered with a concept scheme for a 12-storey mixed-use building that capitalises on potential bay and CBD views from upper levels.
The irregular-shaped site, about 17km south of Melbourne’s CBD, is occupied by a 560sq m brick exchange building that could be retained and adapted or replaced as part of a future redevelopment.
The property is being marketed with a three-year leaseback to Telstra, plus an 18-month option, providing immediate holding income while allowing flexibility for redevelopment through an early termination clause if required, accoding to GrayJohnson, who is marketing the site. Charter Keck Cramer is acting as transaction adviser.
GrayJohnson said the site’s commercial 1 zoning supported a broad range of development possibles, including residential apartments, office space, hotel accommodation or mixed-use projects.
The site is also being described as suitable for alternative uses such as healthcare, childcare or hospitality, reflecting the growing demand for community and commercial services within established suburban centres.
This campaign follows a series of Telstra divestments of surplus exchange assets across Melbourne as the telecommunications giant continues to rationalise its property portfolio.
Earlier this year, Telstra sold former exchange properties at Glenroy, while previous transactions have included sites at Armadale, Hawthorn East, Beaumaris, Box Hill and Rowville.
The Sandringham offering is expected to attract developers seeking well-located metropolitan infill opportunities, particularly given the scarcity of large redevelopment sites within established bayside suburbs.
The property is being offered for sale via an expressions-of-interest campaign due to close on August 12.
According to local market data, Sandringham has recorded solid residential price growth over the past year, underlining continued demand for housing in Melbourne’s established bayside precincts.
