Billionaires eye Telstra’s $1.5bn property package

Telstra is reducing its property portfolio after vowing to raise $2bn. Picture: Getty Images

Billionaires who feature among the top 10 richest people in Australia are believed to be lining up as prospective buyers for a stake in Telstra’s $1.5 billion property portfolio.

It is understood that billionaires who generated their wealth from real estate and feature among the top 10 in The List — Richest 250, published by The Australian, are among those expected to bid.

The real estate billionaires who feature among the country’s top 10 richest include the Lowys, the Triguboffs, the Gandels and the family of Hui Wing Mau.

On offer is a 49 per cent interest in the portfolio owned by the nation’s largest telecommunications company.

It is understood the attraction to the high-net-worth private investors is the bond-like nature of the properties that make them a haven for family wealth.

Selling the portfolio on behalf of the telco is investment bank UBS, with first-round bids due on June 24.

The billionaire investors will join more well-known names on the property investment circuit lining up for the assets, including Charter Hall, Dexus and, potentially, GPT.

Other infrastructure funds are anticipated to enter the frame and AustralianSuper, which recently vied for Healthscope, with its lucrative property portfolio, is thought to be a contender.

The jury remains out on how eager foreign investors will be in the buildings, with some suggesting the Foreign Investment Review Board could prevent ownership.

However, attractive to local property groups will be the fact that some sites have potential for development.

Many believe the portfolio is ideally suited to Charter Hall’s recently listed Long WALE REIT, given that the portfolio has a 21-year weighted average lease expiry.

On offer is a 49 per cent stake in 37 buildings around the nation, with most in Melbourne and Sydney.

Any buyer would probably need to write a cheque in the high hundreds of millions to secure the holding, analysts said.

Telstra is reducing its portfolio after vowing to raise $2bn, while dealmakers have pitched other ideas to the telecommunications giant.