More Changes Afoot For Rialto, Melbourne

MELBOURNE’s iconic Rialto building is facing a vacancy blow-out of almost 20 per cent, with major tenant Telstra refusing to confirm it will stay in the office beyond the next few months.

The announcement comes as two restaurateurs confirm they are considering retail space within the landmark building.
 
Sources say the privatised telecommunications giant, which was told by the Rudd Government last month it may need to separate its wholesale and retail businesses, is considering vacating the approximate 16,000 square metres it occupies of the 84,700 square metre glass office, which upon completion in 1986 was the tallest city building in the southern hemisphere.
 
“We have a lease that expires in April 2010,” a Telstra spokeswoman told The Age. “We intend to continue to occupy the space until that time.”

 A spokesman for the owner of the building, Rialto Joint Venture, a consortium of St Martins Victoria and Grollo Australia, said Telstra is yet to formally advise RJV of its intentions.
 
“In the meantime, we have commenced discussions with several prospective occupiers regarding the space and will also continue to work with Telstra to assist with possible space requirements beyond 2010.”
 
It’s speculated vacated offices within the Rialto will undergo a major refurbishment, designed to improve the building’s environmental credentials and attractiveness to prospective tenants.
 
Rialto’s famous 15-year old observation deck is expected to be redesigned as a culinary and retail precinct, with top chef Shannon Bennett undertsood to be in talks to move the famous VUE DE MONDE restaurant, to the deck. Guy Grossi is speculated to be considering leasing retail space in the forecourt.