Construction of the $703 million New Zealand International Convention Centre and Hobson Street hotel project by SkyCity Entertainment Group has been delayed six months and will now be completed by December.
Auckland-based SkyCity is New Zealand’s only casino group. The delay in the project, SkyCity said last week, was caused by cost overruns by Fletcher Building, the construction company. This is one of several projects where Fletcher has run into problems; these include the Justice and Emergency precinct in Christchurch. This has led the building company to begin selling assets and selling shares to raise funds to get back on its feet, and to also pay damages to SkyCity.
SkyCity doesn’t expect its final investment to increase significantly. It also may collect about $40 million due to a clause for liquidated damages in its contract with the builder.
Besides the convention center, SkyCity is also spending $330 million to redevelop its Adelaide casino. It is also mulling improving its Hamilton casino by adding a hotel.
