SkyCity concedes APAC in doubt but still has until 2023 to open

SkyCity Entertainment Group has conceded to investors that events booked for 2021 will be impacted by the recent fire that destroyed the roof of the partially built international convention centre.

Events booked for 2021 included the APEC’s leaders’ week in November, although the company did not specify it directly in their presentation held in Adelaide.

“Expect fire and damage to result in material delays to completion dates. Delays likely to impact ability for NZICC to host conferences in 2021. Impact beyond 2021 not yet known. Immediately priority on recommissioning NZICC car park for staff and reopening Nelson St entry/exit,” the presentation said.

Fletcher Construction has regained control of the New Zealand International Convention Centre, as investigations into the cause of the fire and structural damage continue.

SkyCity has until 1 January 2023 to complete the NZICC under existing commitments with the New Zealand Government, with Fletcher legally “required” to finish the project.

SkyCity and Fletcher were committed to delivering the building to meet the Government’s requirements, it said.

“Fletcher is working to determine the impact of the NZICC fire on the project’s delivery timeline and costs, the timing of insurance proceeds and project cash flows, and any potential impact on the Construction provisions announced in February 2018,” Fletcher said in a statement.

“The company confirms that based on information currently available it remains within these provisions.

“The company will continue to give active consideration to this matter as additional information becomes available, and expects to be in a position to provide a further update at its half-year results announcement in February 2020.”

There has been unconfirmed speculation that a teenage apprentice may have caused the blaze by leaving a blowtorch on unattended.