Docklands’ Melbourne Star fails to attract buyer more than a year on from shutdown

City leaders are calling for action over the sale of the abandoned Melbourne Star amid fears it will be left to “rust and rot”.

Docklands Chamber of Commerce chief executive officer Shane Wylie at the Melbourne Star Observation. Picture: Wayne Taylor

Traders and city leaders have called for urgent action to be taken over the sale and possible transformation of the Melbourne Star amid fears it will be left to “rust and rot”.

More than 14 months after it was closed, the Docklands observation wheel has failed to attract a buyer and its future remains in the hands of administrators trying to claw back more than $3.9 million of debt.

Administrators told the Herald Sun they were in talks with Australian and foreign investors and there was scope to sell the wheel, move it to another Victorian location or ship it overseas.

Melbourne star observation wheel's one year anniversary. Picture: Brendan Francis

But no deadline has been set for a sale or a possible revamp of the prominent Docklands site, raising concerns the wheel could sit as a 120m tall white elephant for years.

Docklands Chamber of Commerce executive officer Shane Wiley said it would take a least six months and “tens of millions of dollars” to get the wheel moving again and traders feared the site would be left to crumble.

“It could get to a point whereby it just sits there … rotting into the Docklands architecture,’’ he said.

“It’s just siting there while Docklands is moving on and trying to create a new identity, potentially without that attraction ever working again.

Docklands Chamber of Commerce chief executive officer Shane Wylie. Picture: Wayne Taylor

“It might just sit here for years … it could just be left there to dilapidate.’’

Andrew Hewitt, financial advisory head of liquidator Grant Thornton, said talks were ongoing about a possible sale of the site.

“We are continuing to progress with various stakeholders engaged in the process of dealing with the company’s assets, including the Melbourne Star Observation Wheel,’’ he said.

“The sale process will determine the future of the site and outcome for the existing assets.”

He could not say how long it would take to dismantle the wheel, revamp the site if it was removed or what the asking price was.

“The price is commercial in confidence,’’ he said.

The Herald Sun has been told an Australian investor as well as potential suitors from Asia and the Middle East had voiced interest in buying the wheel but at least two parties had since pulled their offers.

The Melbourne Star at Docklands opened in 2008. Picture: supplied

Mr Wylie said Docklands traders wanted to “move forward”.

“The best thing for Docklands right now is direction and action and whether that is for the wheel to stay here or for a party to relocate it, we need action,’’ he said.

“The wheel will get to a stage where it is not recoverable.

“If it just stays there for several years, it’s going to rust and rot.’’

Lord Mayor Sally Capp said the City of Melbourne was “incredibly saddened” the tourist attraction was closed, with Docklands traders hard hit by Covid lockdowns.

“While the future of the wheel remains up in the air we’re still very hopeful that a resolution for the site can be found as it occupies a prime location in the heart of Docklands,’’ she said.

The wheel, opened in 2008, closed in September 2021 when its operating company MB Star Properties Pty Ltd was placed into liquidation.