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The new investors collectively contributed $11 million in a deal that has already gained approval from liquidators and creditors.
“We’ve had to replenish old creditors,” said Jay Jones, of Skyline Attractions. “All creditors had to be paid, and then we’ve got to invest to make it shine again.”
Jones said the ambition was to offer “the only thing in Melbourne that’s going to be a pre-COVID price,” and that adult tickets would be between $32 and $35, as they were when the wheel closed.
“There’ll be discounted prices for families and seniors, but there will be upsell packages, and people will have the opportunity to spend more,” he said.
Jones said there was “a lot of maintenance to do” before the wheel could take passengers again, but that his team recently had the wheel moving for inspections. The work includes paintwork, upgrading cabins, Wi-Fi installation, lights and rehabilitating four of the 32 motors on the attraction.
Jones, whose company operates smaller wheels in St Kilda and South Wharf, as well as Glenelg in South Australia and Airlie Beach in Queensland, was confident his family’s business experience would see the Docklands wheel become a successful business.
The wheel will light up again by the end of next year.Credit: Darrian Traynor
“We’re a family business that has to run on a smaller budget. So we’ve learned to, while keeping safety and quality at the highest, keeping the costs in house, keeping things down, that’ll be part of making this successful again,” he said.
Skyline Attractions has committed to having the wheel turning “by the end of 2026”.
“Over 20 years, this thing has been over-promised and under-delivered. We don’t want to do that. We want to do the opposite,” said Jones.
“It’s a massive job. There’s no denying that,” he said. “Of course I’m nervous, but that’s made us do our due diligence over and over again.”
The view from inside a cabin.Credit: Paul Rovere
Reece said the council had been working behind the scenes to secure the attraction’s future, but confirmed that no ratepayer money had been committed to the revival deal.
The $100 million Observation Wheel originally opened in 2008 – two years late – under the name Southern Star, but was forced to shut just 40 days later because of cracks caused by problems with the design.
It was out of operation for almost five years between 2009 and 2013 as it was taken down and almost fully rebuilt.
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As recently as last year, then-lord mayor Sally Capp said serious discussions were held around selling the wheel for parts after it was shuttered during the pandemic.
Reece was adamant Docklands had turned a corner.
“It’s no secret that Melbourne has had some lean years. We were the most locked-down city in the world. But wherever you look now, things are looking really positive again,” he said.
“Docklands is an absolutely wonderful area. It’s our city’s waterfront suburb. It’s got the best sunsets in the city, and it’s got lots of things to attract people here. And now, with these recent announcements, I think it’s going to go through a renaissance.”
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