Coronavirus: SkyCity NZICC construction resumes, set to be completed by January 2025

Friday, 1 May 2020

Construction work on SkyCity's convention centre has resumed under level 3, but the casinos, hotels and Sky Tower will remain closed until level 2.

Fletcher Construction restarted work on SkyCity's New Zealand International Convention Centre (NZICC) which was damaged by a three-day fire sparked accidentally last year.

The new completion date for NZICC project was January 2, 2025 as the impact of Covid-19 was likely to affect the construction industry for 'some time to come,' SkyCity said in a statement released to the NZX.

'SkyCity will continue to work with Fletcher Construction to complete the project as soon as possible which will hopefully be well within the extended timeframe,' the company said.

The new completion date for the New Zealand International Convention Centre is January 2, 2025.

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The construction company also recommenced work this week SkyCity's Horizon hotel.

The entertainment group said it had also resumed refurbishments on restaurants and bars in Auckland and restarted work on its new entertainment zone. In Hamilton SkyCity resumed work on part of its casino.

SkyCity said it continued to have a strong liquidity position with around $400 million of cash and undrawn debt facilities currently available.

SkyCity expects to re-open its New Zealand properties in a stages under alert level 2, with reduced operating hours initially based on expected customer demand.

The first to open will be the casino, but with a limit of 100 people.

'This will require SkyCity to create distinct “zones” on its main gaming floors and put on hold prize draws, gaming promotions and other public events,' the company said.

It also planned to open its hotels, the Sky Tower and most restaurants with adherence to 'strict' social distancing and contact tracing measures.

In Australia, SkyCity's Adelaide also casino remained closed at the moment.

The company said after its restructure announced last month which included 200 immediate job cuts, SkyCity’s operating cash requirements (before re-opening any properties) was about $12 million per month.

SkyCity also has significant ongoing capital expenditure commitments on its two major projects and 'other smaller development projects in Auckland and Hamilton.'

At the time of the restructure SkyCity chief executive Graeme Stephens said during the closure, the company faced about $90m in lost revenue per month while incurring significant costs such as utilities, lease payments and labour, with labour costs alone around $20 million per month.