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Tourist attraction operator Straco Corporation has acquired the Singapore Flyer and other adjoining properties for $140 million, revealed media reports.
Its 90 percent owned subsidiary Straco Leisure bought the 165-metre high observation wheel by the Marina Promenade from Singapore Flyer Pte Ltd. The latter built the iconic structure at a cost of $240 million, but the company went into receivership last year due to financial problems.
Straco Leisure’s remaining stake is owned by Woodlands Transport Service, a local tourism company that operates 350 buses.
The prospects of the Flyer, touted as the world’s highest observation wheel, are extremely exciting under the new ownership, said Tim Reid, partner of recovery firm Ferrier Hodgson.
He also revealed that the attraction is generating positive cash flows, enabling the receivers to repay all interest and a portion of the principal owed by the original owner.
“At the commencement of the receivership, the directors expressed concern that we would need to borrow funds for working capital to run the business.” But due to the operational changes implemented by the receivers, there was no need to take out loans.
The Singapore Flyer’s three-storey commercial complex measuring 65,000 sq ft is fully occupied, except for three big units used for corporate events.
Straco operates an aquarium in Xiamen and another one in Shanghai. It also has a cable car service at Lishan Mountain in Xi’an.
Image: Singapore Flyer (Photo by Balou46: Wikimedia Commons)
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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