Melbourne Star Goes Into Liquidation

[Slick]

I've pulled out the full text below. You can read it on the site here.

 

Quote

It is with a heavy heart that the directors of Melbourne Star, Melbourne’s giant
observation wheel at Docklands, today announce the iconic attraction will close
permanently and the operating company, MB Star Properties Pty Ltd, will be
placed into liquidation.
Mr Andrew Hewitt of Grant Thornton will be appointed liquidator and will begin
work this week.
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 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.
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.
We thank our staff, and all Victorians including our partners, suppliers and
supporters for enabling the Melbourne Star to provide a world-class experience
for millions of people from around Australia and the world.

It's worth nothing it's had a really troubled history. I reckon this is the kind of thing that's perfect for Brisbane (specifically, and ironically, our Southbank) given the hype for the Olympics and the notion of really making our city into something to be proud of.

[New display name]

17 minutes ago, Slick said:

I've pulled out the full text below. You can read it on the site here.

 

It's worth nothing it's had a really troubled history. I reckon this is the kind of thing that's perfect for Brisbane (specifically, and ironically, our Southbank) given the hype for the Olympics and the notion of really making our city into something to be proud of.

If it failed in Melbourne how is it going to succeed in Brisbane?

[Slick]

2 minutes ago, New display name said:

If it failed in Melbourne how is it going to succeed in Brisbane?

The current wheel in Brisbane generates a solid profit despite being half the size. I think it comes down to location.

[Naazon]

Isn't the wheel in Brisbane "temporary" and can easily be dismantled? 

[Guest 239]

21 minutes ago, Slick said:

It's worth nothing it's had a really troubled history. I reckon this is the kind of thing that's perfect for Brisbane (specifically, and ironically, our Southbank) given the hype for the Olympics and the notion of really making our city into something to be proud of.

Troubled history you say? 

In saying that, I've been to Melbourne basically every year since 2014 and have never once done this. I always felt it was in a silly location and whilst you can see it from the highways, it's impossible to orient yourself as to where it is from the city so you basically forgot about it once you got into the CBD. 

If it was closer to the MCEC it would have done a lot better in my opinion. 

[Levithian]

 

1 minute ago, Naazon said:

Isn't the wheel in Brisbane "temporary" and can easily be dismantled? 

It's transportable in the sense it can be pulled down and moved, but it had foundations built and piers sunk for it to be positioned where it is close to the river. 

[New display name]

8 minutes ago, Slick said:

The current wheel in Brisbane generates a solid profit despite being half the size. I think it comes down to location.

You could be right, but it did cost 100 million to build.

[Slick]

1 minute ago, New display name said:

You could be right, but it did cost 100 million to build.

…when it comes to liquidations, you generally don’t pay full RRP for liquidated items. 

[New display name]

Just now, Slick said:

…when it comes to liquidations, you generally don’t pay full RRP for liquidated items. 

If Brisbane could get it for a steal it would be a great addition.  I also think the Wheel at SW was very popular and SW would be a good home, for the right price.  

[Levithian]

A good addition for a city with an existing wheel?

What greater addition will this one make? apart from cost a lot to purchase, build new foundations and erect, at which point the ticket prices will more than double, probably leading to another financial disaster. 

Edited September 6, 2021 by Levithian

[Slick]

3 minutes ago, Levithian said:

A good addition for a city with an existing wheel?

What greater addition will this one make? apart from cost a lot to purchase, build new foundations and erect, at which point the ticket prices will more than double, probably leading to another financial disaster. 

You don’t build them side by side. The big issue the current wheel has is that it’s not terribly big. The position against the river is brilliant though. With double the height, it could be iconic. 

[Gazza]

It's because it just doesn't offer a pleasant view.

Main things you can see is the roof of costco and a multi level car park.

Half of the broader view is rail yards and the port. 

You cant see landmarks like the MCG

Waaaay back in the day the proposal was to build it diagonally across the Yarra River on the Sandridge bridge, so right next to Crown Casino, closer to the CBD for walk up visitors, and a better view. It would have slapped, but it got pushed to the shitty docklands site.

Edited September 6, 2021 by Gazza

[joz]

I wonder if construction costs aside, was it running at a profit? If so you'd have to think someone might get a deal on it and continue to operate it?

 

And yeah Southbank in Brissy would make a great home for it. Hard to see a world where that would happen.

 

On the GC Broadwater Parkland would also be awesome. Seems like far too legit of a wheel to be a Theme park ride, but if SW got it putting it right on the Broadwater between the Main monorail station and the Seal theatre would be all kinds of amazing.

[Levithian]

10 minutes ago, Slick said:

You don’t build them side by side. The big issue the current wheel has is that it’s not terribly big. The position against the river is brilliant though. With double the height, it could be iconic. 

Its already iconic. 

What addition view will it have if it is taller? It can already see over the city, the river and to mt cootha. 

The only plus is additional capacity, but I think that works against it more than it helps. Reason being, how many groups of 20 people do you think turn up for a ride? Kind of a moot point anyway with covid. 

[Gazza]

I think the financial model was wrong.

It's a $100m attraction.

https://www.parkz.com.au/article/2004/05/05/12-Melbournes_Southern_Star_rolls_near.html

The ride is expected to generate up to $45 million per year, promising 1.5 million riders per year paying $28 for the 30 minute ride, plus $3 million from the naming rights to the ride. It is said that there is interest from both Australian and international companies for this valuable piece of advertising.

 

[joz]

Theres a real difference in quality between a travelling ronald busink wheel and a legit permanent install observation wheel

Edited September 6, 2021 by joz

[Naazon]

6 hours ago, Gazza said:

I think the financial model was wrong.

It's a $100m attraction.

https://www.parkz.com.au/article/2004/05/05/12-Melbournes_Southern_Star_rolls_near.html

The ride is expected to generate up to $45 million per year, promising 1.5 million riders per year paying $28 for the 30 minute ride, plus $3 million from the naming rights to the ride. It is said that there is interest from both Australian and international companies for this valuable piece of advertising.

 

Thats over 4000 people per day...

[webslave]

The location was only one of the problems.  There were far more;

• Pricing was far too high for what any locals would consider paying.
• It was stationed in the middle of what is basically a future dead mall.
• Parking around it turned into reasonably expensive paid parking, and when that turned out to be a stupid idea nobody got the memo when it changed back.
• Full of pretension about doing "flights" on the wheel that didn't land as marketing.
• It did practically nothing to appeal to the locals.

Beyond this, I considered that for travellers to Melbourne the wheel was the worst kind of false advertising.  Seeing this thing lit up and flashing away on the skyline gave you the impression it was smack in the middle of party central - like an LA Live or even a Darling Habour type of setup.  The reality was far removed from that.

[DaptoFunlandGuy]

14 hours ago, New display name said:

If Brisbane could get it for a steal it would be a great addition.  I also think the Wheel at SW was very popular and SW would be a good home, for the right price.  

I was thinking SW myself - since the Spit height restrictions have apparently been relaxed, it'd be a great opportunity for them.

14 hours ago, joz said:

On the GC Broadwater Parkland would also be awesome. Seems like far too legit of a wheel to be a Theme park ride, but if SW got it putting it right on the Broadwater between the Main monorail station and the Seal theatre would be all kinds of amazing.

Broadwater would be either local gov or standalone firm operation. It would stand on its own and need to pull people in on its own. Its possible, but low seasons would hurt. I don't see a problem with SW offering it and to be honest, they could also operate it outside of park hours as a standalone attraction with it's own separate entrance - perhaps even a dining experience to increase profits - the GC is the perfect place for those upcharge add-on experiences. (and you can sunwheel the damn thing into your laser lake show too)

Looking at the sizes (and these scales are pretty close) I don't think it would realistically fit between seal theatre and the monorail, but the former Sea Viper site would be a good fit, with the added bonus of street access for an after hours gate.

[Naazon]

It would also fit in the dead centre of the front lake. The island isn't big enough, but from google maps, it appears to be quite shallow around it.

[DaptoFunlandGuy]

What, and get rid of that awesome boat shed!?

[Naazon]

10 minutes ago, DaptoFunlandGuy said:

What, and get rid of that awesome boat shed!?

God no. that becomes the entry building. May need to cut some roofs off.

[Chris D]

Note that Melbourne Star only operated the wheel, with it been sold to Robu Group (who also own the Brisbane one) earlier this year see https://www.realestatesource.com.au/melbourne-star-observation-wheel-sold/

[Gazza]

RoBu = Ronald Bussink, does that mean he bought it with the intention of relocating it or something?

[Slick]

So glad to read that my idea might actually have legs.

Edited September 7, 2021 by Slick