Buoyant ticket sales and expected returns spur chairman to raise stake in iconic project to 90%
'It'll be an iconic development... We're going to have fireworks on New Year's Day, companies will use if to promote products.' MR BOLLEN, on various ideas for the 165m high observation wheel -- ST PHOTO LIM SIN THAIBUMPER ticket sales and a higher forecast return have prompted Singapore Flyer chairman Florian Bollen to raise his stake in the $240 million observation wheel from 60 per cent to 90 per cent.
He told The Straits Times last Friday that he has bought the 30 per cent stake of Melchers - a German trading company - for an undisclosed sum.
The deal, estimated to be worth $40 million, was done via AAA Equity Holdings, a private investment vehicle headed by Mr Bollen.
O&P Management, which is in charge of the project's development management, owns the remaining 10 per cent.
Overseeing big projects is nothing new to Mr Bollen, a millionaire who was formerly a Hollywood producer - he produced blockbuster films such as Terminator and Basic Instinct.
The London-based German said of his new Flyer investment: 'That's due to the growing confidence we have in this project. Pre-sales are much better than expected.
'We're 100 per cent leased, and market sentiment tells us this is going to be the most iconic new attraction in Singapore over the next few years.'
Melchers general manager Alexander Melchers said: 'We like to complete the project till a certain stage... this will free up resources to develop new ideas. This is a case where the majority shareholder raises his stake.'
He will remain a Singapore Flyer director.
The initial signs are promising for the giant wheel, with its 80,000 sq ft of food and beverage and retail space fully leased.
And more than 500,000 people have already booked to ride the Flyer once operations start in March.
Ms Patsy Ong, managing director of Adval Brand Group, the Flyer's exclusive ticketing agent, said: 'Our sales have exceeded initial projections by 70 per cent. Our pre-bookings are almost full. We've also set aside about 20 per cent of tickets for walk-in customers.'
A ride on the Flyer - the world's tallest observation wheel at 165m, or 42 storeys high - costs $29.50 and will last about 37 minutes. It can hold a maximum of 784 people.
Mr Bollen, 42, expects a crowd of 2.5 million to four million to ride the Flyer in its first year.
'It'll be an iconic development... We're going to have fireworks on New Year's Day, companies will use it to promote products.'
He expects the project to break even with a positive cash flow in its first year, as well as yield an annual return of '10 per cent to 15 per cent' - higher than the 6 per cent to 10 per cent he had forecast earlier.
Mr Bollen also revealed that the group is 'in discussions with a number of companies' to sell naming rights for the Flyer.
'We're looking for a strong partner before we give the naming rights,' he said.
There are also plans to allow companies to sponsor the 28 individual capsules, which will involve adorning them in corporate colours.
As with his earlier Hollywood blockbusters, Mr Bollen hopes to shoot another successful flick with the Flyer.
He said: 'In the film industry, we're always looking for a good story. The Singapore Flyer is an extremely good story in the making. That's why we're increasing our stake.'
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