SkyCity to seek $330m from Fletcher Building over Convention Centre delays

Friday, 6 June 2025

Fire gutted the nearly-completed New Zealand International Convention Centre in 2019.

Casino and entertainment group SkyCity is to sue Fletcher Building for $330 million in damages, for losses sustained after lengthy delays to the opening of the New Zealand International Convention Centre in Auckland.

“The NZICC was originally scheduled to take approximately three years to build, and it has now taken almost 10,” said SkyCity chief executive Jason Walbridge says.

The project was nearing completion in 2019, when a fire tore through it, shrouding Auckland’s central business district in a pall of smoke.

But delays have continued to dog its construction, and SkyCity told investors on the NZX sharemarket on Friday morning that it is to file legal proceedings against Fletcher Building Limited and The Fletcher Construction Company Limited.

The claim would damages for losses incurred by SkyCity arising from ongoing delays in the completion of the project, including as a result of the 2019 fire, the statement to the NZX said.

“The delivery of the NZICC by Fletchers is now nearly six and a half years behind the contractually agreed delivery date of January 2019,” it said.

Shareholders at casino company's AGM were treated to a look inside the nearly-completed convention centre.

“SkyCity’s claim alleges that Fletchers’ breaches of contract, including those which caused the fire, constituted gross negligence, and/or a persistent, flagrant or wilful neglect to carry out obligations under the building works contract,” it said.

Fletcher Building issued a statement acknowledging the legal action, saying: “The risk of a dispute with SkyCity over delay and costs associated with the NZICC has been flagged in previous disclosures, including most recently in the Company’s 2024 Annual Report and the FY25 Interim Financial Results.”

Fletchers said it had already paid significant liquidated damages to SkyCity in relation to the delays.

“Accordingly, Fletcher Construction will vigorously defend itself against the SkyCity claim for further liquidated damages beyond the capped amount provided for in the building works contract,” it said.

“Whilst the delivery of the NZICC project has suffered from a number of challenges, including as a consequence of the fire and Covid-related impacts, Fletcher Building rejects absolutely that it has breached its contract with SkyCity in the manner alleged.”

SkyCity said it was entitled under the contract to liquidated damages of over $330 million from Fletchers.

SkyCity Entertainment Group international convention centre (artist’s impression).

“SkyCity has attempted to resolve these claims by agreement with Fletchers but has been unable to do so,” the company told its shareholders.

Fletcher Building said it had completed the construction work on the troubled project, but acknowledged that there was still work to be done remediating defects and completing what it called complex commissioning processes and securing required Council sign-offs.

“Fletcher Building anticipates handing over the site to enable SkyCity to commence its operational readiness activities during the second half of 2025, in preparation for SkyCity’s announced opening in February 2026,” Fletchers said.

SkyCity chief executive Jason Walbridge expects the New Zealand International Convention Centre to open in February.

Walbridge said: “This is a project of key importance not only for SkyCity but also Auckland and the wider New Zealand economy.”

“We remain confident in our opening date of February 2026 and expect the building to be handed over to us in the second half of this year.

“We are ramping up for opening with recruitment for key positions already underway and exciting plans to celebrate finally being able to open our doors and welcome visitors to enjoy the world class experience we will have on offer,” he said.