Telstra (ASX: TLS) announced Monday that it will be consolidating its corporate offices into one Canberra headquarters location.
"This will be the biggest project our property team has undertaken in Canberra and the largest for the company so far this year," said Telstra Property Director Vito Chiodo in a statement. According to the release, offices in Dickson, Barton, Bruce, and Deakin will all be moved to the new headquarters, while the company's Symonston operations will remain.
In addition to housing more than 1,000 employees across 13,250 square metres of office space, the offices will also be home to Telstra's six-year $1.1 billion Department of Defence contract. Although the announcement doesn't state how many of the 350 expected jobs will be located in the new space, it does note that "some… will be based in Canberra."
The new headquarters is expected to be completed in early 2014, and will include a Tesltra store, free Wi-Fi, and a café. The move comes as part of the corporation's larger strategy to cut down on its property use and improve internal communication. Since 2005, Telstra has exited 188 leased sites in Australia and grossed $169 million in annualised lease savings.
Foolish takeaway
Building new headquarters is enough to make any cost-conscious investor cringe, but Telstra's moves seem to be for the right reasons. From a financial standpoint, moving four offices into one could increase efficiencies and decrease redundancies. Operationally, this new space has the ability to vastly improve internal communication and collaboration. With open-plan seating, breakout areas, and in-house amenities, investors would be wise to remember the age-old adages: "Energy is contagious" and "A happy worker is a productive worker."
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The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.
