Hope Melbourne Star Observation Wheel will spin again, and soon

Talks are being held between the liquidator of the Melbourne Star Observation Wheel and a potential buyer — who first wants to ensure it’s safe and can spin again, after sitting idle for years.

The Melbourne Star Observation Wheel has been closed for more than three years Picture: Wayne Taylor

The troubled Melbourne Star Observation Wheel is set to make a long awaited return with a potential buyer running last minute checks to ensure it can start turning again.

The Docklands attraction, closed for more than three years, is expected to be given a new lease of life in “coming months”.

A breakthrough in talks between liquidators of the 100m high structure and a prospective buyer has raised hopes it will recommence operations early next year.

The Herald Sun can reveal a takeover deal for the wheel is close, with “due diligence” checks being run to assess its viability and safety.

Teams of inspectors have been seen working high on the inner spokes of the wheel this week, sparking further hopes of its revival.

The wheel will undergo checks to ensure it can still spin safely. Picture: Wayne Taylor

A spokesman for liquidator Grant Thornton, Andrew Hewitt, confirmed talks about a potential takeover and resurrection of the wheel had stepped up.

“We are currently working with a party in relation to the MSOW and they are continuing the due diligence process including activity at the wheel over the coming weeks to assess its operational issues,’’ he said.

“Upon completion of the ongoing due diligence process they will determine whether they wish to progress to a purchase of the assets.”

Lord Mayor Nick Reece said: “I would expect to see the Melbourne Wheel spinning again in coming months.’’

He discussions were being held between liquidators, the preferred bidder and state government.

“I think we’ll see the wheel spinning again and that would be great,’’ he said.

Traders in the District Docklands area around the wheel, approved by the former Brumby Government in a move meant to breathe life into the area, welcomed the news.

Krabby’s Crab Boil manager Layne Liu opened his business facing the wheel in 2022 but has never seen it operating.

“It would be good news for us,’’ he said.

The wheel, a feature of Melbourne’s skyline that lit up the night sky, was a popular tourism site upon its 2008 opening but became an eyesore since being closed at the height of Covid lockdowns.

It’s viability will also be assessed. Picture: Wayne Taylor

Getting the wheel spinning again would be a “symbolic victory” for Melbourne, it’s claimed. Picture: Wayne Taylor

Docklands Chamber of Commerce president Daniel Hibberd said getting it restarted would be a win not just for traders but a symbolic victory to declare Melbourne was going again.

“When it turned off it was a bit of an indicator or a reminder that things weren't great at that particular point in time,’’ he said.

“Just seeing it come back on will hopefully reverse that feeling and provide a bit more hope that the city is turning around and coming back to full force, because businesses are still challenged.’’

The wheel closed in September 2021 when its operating company MB Star Properties Pty Ltd was placed into liquidation with more than $3.9 million of debt.

Committee for Melbourne chief executive Scott Veenker said: “The stagnation of the observation wheel in Docklands has been a symbol of business in that area standing still for too long.

“While it sits idle it’s an eyesore on our skyline.

“We have long advocated for the wheel to get spinning again or be relocated.’’

Despite initial interest from suitors from Victoria, interstate and overseas and talk of it being moved within Melbourne and overseas, the wheel has sat dormant since shutting.

“Not only is a it great for local business and as a precinct, I think for Melbourne as a whole it would be fantastic to see it going again for sure,’’ Mr Hibberd said.