Singapore Flyer - History

History

The Singapore Flyer was first conceived in the early 2000s by Patrick MacMahon of Melchers Project Management, a subsidiary of German company Melchers. Formal planning commenced in 2002. A new company, Singapore Flyer Pte Ltd, was formed as the developer, with Melchers Project Management holding a 75% stake, and the remainder held by Orient & Pacific Management.

The project was formally announced and endorsed on 27 June 2003 by the Singapore Tourism Board with the signing of a memorandum of understanding, formalising the understanding between the developer and tourism board with regard to the land-acquisition process. Under this agreement, the tourism board was to purchase the plot of land in Marina Centre from the Singapore Land Authority, and lease it to Singapore Flyer Pte Ltd for 30 years with an option to extend the lease by another 15 years. The land was to be rent-free during the construction phase of the project. In July 2003, Jones Lang LaSalle was appointed as the real estate advisor. Takenaka and Mitsubishi were selected as the main contractors, and Arup as the structural engineer.

Early designs showed a 169 m (554 ft) tall wheel similar to the London Eye, drawing criticism that it lacked originality. The developers pointed out that the design was not finalised and was merely for conceptualisation purposes, though the final project changed little from the early designs. Subsequently, the project was to grind almost to a halt when the developer faced difficulties in sourcing funds to build the wheel. Original plans to complete the wheel by the end of 2005 were thus postponed indefinitely, and there were reports (denied by the Singapore Tourism Board) that the tourism board has set an ultimatum date of 31 March 2005 for the developer to iron out its financial issues and to keep the development going.

By September 2005, the project was revived when funds were successfully sourced from two German banks. Collin William Page, a subsidiary of ABN AMRO, was to provide equity to a maximum of S$100 million, with a further S$140 million coming from HypoVereinsbank. With this injection of S$240 million, the largest single foreign investment in the Singaporean entertainment industry, construction was slated to begin by the end of the month. The stakeholders then were AAA Equity Holdings, Melchers Project Management, and Orient & Pacific Management.

In August 2007, Florian Bollen, Singapore Flyer Pte Ltd chairman, raised his stake in the Singapore Flyer from 60% to 90% through acquisition of Melchers Project Management's 30% stake. The deal was done via AAA Equity Holdings, a private investment vehicle headed by Bollen. Orient & Pacific Management, which spearheaded the project development management, owns the remaining 10%.

In March 2010, Great Wheel Corporation, a consultant for the Singapore Flyer, was one of several companies named in a report alleging embezzlement, lodged with the prosecutor's office in Berlin, Germany. Transfers of €3 million to companies in the Virgin Islands and UK, and monthly payments of €40,000 from the Berlin wheel's project company, Great Berlin Wheel, to its linked company Great Wheel in Singapore, are questioned. A prosecutor's office spokesperson said: "We understand there were false contracts concerning non-existing deals, and these contracts were made to take the money for private concerns."

Florian Bollen is chairman of both Great Wheel Corporation, registered in Singapore as GWC Holdings, and Singapore Flyer Pte Ltd. A spokesperson for the Singapore Flyer said: "The giant observation wheel in Berlin is separate from the Singapore Flyer and it is separately owned and operated. Great Wheel Corporation is also a separate entity from the Singapore Flyer. Any investigations relating to the Berlin wheel and Great Wheel Corporation have no effect on and no relationship with the Singapore Flyer's operations and finances."