An Ultimo data centre first commissioned by failed Canadian telco vendor Nortel Networks in 2000, and operating as an edge data centre for 20 years since, is up for sale.
Image: JLL and CBRE
Nortel converted the former warehouse into a 5604 square meter data centre, which was next acquired by Optus.
Current owner Fortius has listed the 549 Harris Street property through JLL and CBRE, with expressions of interest open until March 24.
The centre’s current lease to Optus expires in 2024 with no further option, meaning it may be more profitable to convert it to some other use.
“Given the flexible B1 zoning, the investment provides compelling and genuine value add opportunities," JLL national director of sales and investments in NSW James Aroney said.
"For example, repositioning into creative office space with the inclusion of retail will provide a significant rental reversion opportunity when considering passing rents of $350 per square metre.”
However, the agents noted that data centres are a thriving market with strong domestic growth.
“This edge data centres has the potential to increase its capacity, as the site is currently underutilised by Optus and there may be additional power capacity that is available to an incoming operator”, the agents said.
