This article is from the Australian Property Journal archive
THE wheel of fortune has taken a bad turn for Melbourne Star’s observation wheel at Melbourne’s Docklands. After more than a decade on Melbourne’s skyline the company running the wheel has gone into liquidation.
MB Star Properties which operates the wheel announced it has gone into liquidation.
“It is with a very heavy heart that the directors of Melbourne Star, Melbourne’s giant observation wheel at Docklands, today will announce the iconic attraction will shut down permanently.
“The giant observation wheel has been a part of the city’s skyline for more than 15 years, during which time it has welcomed more than 300,000 visitors every year, with international and interstate tourists making up 45 per cent of the business,”
MB Star Properties also blamed the pandemic, border restrictions and rolling lockdowns.
“Unfortunately, the global COVID-19 pandemic and subsequent travel restrictions and sustained shutdowns, adding to pre-existing challenges of operating amid increased high-rise development and changes in the Docklands area, has made it impossible to sustain the business.
“The directors of the wheel are absolutely committed to doing the right thing by our dedicated team and have made arrangements to ensure all our employees will be paid their full entitlements,” the company said in a statement.
Developed by ING Real Estate, the $100 million 120-metre wheel, formerly known as Southern Star, opened in 2008 – two years behind schedule.
It was dubbed the wheel of misfortune because of several hiccups including structural defects. It was originally due to open in early 2006 in preparation for the Volvo Ocean Race 2006.
In October 2013 ING Real Estate offloaded the wheel of misfortune to Japanese builder Sanoyas Holdings Corporation.
Eight years later and in February this year, Switzerland’s Robu Group bought the wheel from Sanoyas for an undisclosed price.
At the time of the purchase, Robu said a new master plan was expected to bring exciting new visitor activities and experiences in the near future.
The Robu Group also operates The Cape Wheel in South Africa, the Channel Seven Wheel in Brisbane, and the Skyviews Miami and Skyviews New Jersey.
