Construction is due to begin next week on the Singapore Flyer, which at 170 meters tall will be the world's biggest observation wheel. The project, located within the Marina South precinct, hopes to attract 2.5 million visitors per year. Developed by Melchers Project Management the project was commissioned by the state-run Singapore Tourism Board.
HVB Asia has completed an S$140 million ($83.4 million) structured finance facility for the developers, which will part finance construction of the wheel and retail complex located on site. Following the 30-month construction period, a five-year ticket receivables securitization will be issued to international investors. HVB, however, says the deal could happen earlier if it decides to use the progress payment structure employed on previous residential property projects in Singapore.