Grant Thornton helps secure future of Melbourne Star observation wheel
The Melbourne Star observation wheel looks like it could be in operation again by the end of the year, with Grant Thornton helping to secure the future of the troubled Docklands attraction.
Dormant since 2021 after owners MB Star Properties entered liquidation, creditors have now accepted a ‘deed of company arrangement’ (DOCA) for the structure and site put forward by recently appointed voluntary administrators Grant Thornton.
Built at a cost of $100 million, the 120-metre-tall wheel has had a cursed history, closing for an extended period soon after its 2008 launch due to structural defects, and more recently looking destined for the scrap metal heap after struggling to overcome the impact of Covid-19.
“The DOCA provides more certainty for stakeholders and delivers a pathway to reopen the Melbourne Star which is positive for everyone who wants to see this landmark attraction back in operation for the precinct,” said Grant Thornton restructuring advisory partner Andrew Hewitt. “We’re pleased the administration process has reached an outcome that is beneficial to all parties.”
Under the terms of the agreement, MB Star Properties will be restructured and recapitalised, with international backers RoBu Group and Liberty Star Investment of Switzerland and the US on board alongside Melbourne-based Skyline Attractions, which also owns the city’s South Wharf Ferris wheel along with two others in Airlie Beach and the seaside suburb of Glenelg in Adelaide.
“Our team has been working closely on the recommissioning of the Melbourne Star since August and have made fantastic progress,” said Skyline business manager Jay Jones. “It’s a privilege to support the safe return of this much-loved attraction, welcoming locals and visitors back to enjoy the views and see the wheel light up the Docklands skyline once again.”
Jones further noted that the company is gearing up to reopen the attraction in the second half of this year, while Melbourne Lord Mayor Nick Reece described the previous investment announcement as a “wheely big deal” for the city. Jonathan Codman, director of precincts for Docklands, added that the “Melbourne Star has long been integral to the Docklands and is a world-class attraction.”
Reliable sales data for the 30-minute ride, with adult tickets priced at around $35 prior to its last shut-down almost five years ago, is hard to come by, but projections are for a quarter of a million visitors to pass through in its first year after reopening. According to reports, its new collection of owners have already put in more than $11 million in getting the wheel back up and spinning.
