SkyCity Entertainment and the Government have set the delivery deadline for the New Zealand International Convention Centre to be the start of 2025.
In an update to the NZX this morning, SkyCity said it had agreed with the Government that the Covid-19 pandemic was a force majeure event under the NZICC licensing agreement and that “the long stop date for completion of the NZICC project be extended to 2 January 2025”.
“Consequently, SkyCity’s obligation under the NZICC Agreement to operate the NZICC will also be extended based on the date when the NZICC is completed,” said the company.
“SkyCity and Fletcher Construction remain committed to completing the NZICC in accordance with the requirements of the NZICC Agreement. 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.”
Fletcher Construction restarted work on the convention centre and the adjoining Horizon by SkyCity hotel project this week after a period of tools-down while the country was in level 4 lockdown following the Covid-19 outbreak. The project has already suffered significant delays at the hands of contractor Fletchers, and due to the outbreak of a huge fire at the site last year.
SkyCity said all of its properties remained closed during Covid-19 alert level 3 but refurbishments, development and maintenance work had restarted at its Auckland and Hamilton sites.
Work on the development of the All Blacks Experience and Weta Workshop attractions at the existing SkyCity Auckland Convention Centre had also resumed.
At alert level 2, SkyCity said it expected to re-open its New Zealand properties in a staged manner with reduced operating hours initially based on expected customer demand.
Gaming facilities, particularly for premium customers, main gaming floors with no more than 100 people in any static location, most dining facilities, as well as the Grand by SkyCity and SkyCity Hotel, both in Auckland, would re-open.
The Sky Tower and the main Auckland car park would also re-open.
SkyCity said it was in a “strong liquidity position” with around $400m of cash and undrawn debt facilities available.
However, the company said it was developing a funding plan to support the business over the medium-term.
“This plan will be finalised once the trading performance of its New Zealand properties has been assessed following the expected re-openings by the end of May 2020.”
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