Auckland SkyCity Convention Centre fire: SkyCity shares drop following blaze

Tuesday, 22 October 2019

Firefighters are battling a blaze at Auckland's SkyCity convention centre.

Shares in SkyCity fell 4 per cent after a massive fire broke out at a convention centre under construction in Auckland's CBD.

Shares in the company plummeted between 1pm and 2pm Tuesday as investors reacted to reports of the fire at the seven-storey SkyCity Convention Centre.

But they had recovered a little to trade down 2.5 per cent at $3.88 by 2.30pm.

A large fire broke out at the SkyCity Convention Centre construction site on Tuesday.

That values the company $2.6 billion.

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Shares in construction company Fletcher Building took a smaller hit, but were down 1.3 per cent at $4.66 at 2.30pm.

'Our people and contractors are our number one priority right now. We are currently confirming facts and will provide an update in due course,' a Fletcher Building spokeswoman said.

The fire, which broke out about 1.10pm, saw clouds of black smoke billowing across Auckland CBD.

Workers at the construction centre said it was believed to have started when a blowtorch ignited a waterproof membrane on the roof of the building.

Hundreds of workers had been evacuated and Fire and Emergency NZ advised people to avoid the CBD.

A raft of streets around the construction site were closed, including parts of Hobson St, Victoria St West and Nelson St, Auckland Transport said.

About 100 firefighters were at the scene.

No one was injured, a SkyCity spokesperson said.

The recent SkyCity annual report noted the convention centre and hotel project was the subject of 'unacceptable and costly delays' and was proceeding slower than previously indicated.

It said the convention centre was close to being watertight and the 300-room 5-star hotel was well advanced with the external facade completed and the internal fit-out well underway.

'At this stage we continue to expect completion of the project towards the end of 2020, and expect no material changes to previous guidance on the total investment for the project.'

The report said the project had a good pipeline of conventions, including APEC in 2021.

Auckland Tourism, Events and Economic Development general manager destination Steve Armitage said until the extent of the damage was understood, he was unable to comment on the potential impact the fire might have on the opening of the convention centre.

'We are obviously concerned by the situation unfolding and hope that everyone working on site is safe and accounted for.'

Conventions and Incentives New Zealand chief executive Sue Sullivan also refused to comment on the potential flow-on effects of any delays in getting the centre up and running.

However, the Auckland region is regarded as a key part of the national conference scene, hosting nearly 40 conferences of more than 500 delegates in the year to the end of March.

The Conventions Association has been approached for comment.