By Jonathan Underhill
Sept. 18 (BusinessDesk) – SkyCity Entertainment Group, New Zealand’s only listed casino company, said it has gained resource consent approval for the convention centre.
The company gets some $458 million of gaming concessions as a result of agreeing to build the convention centre in a deal with the government. In May, SkyCity lifted the minimum it will invest in the development to $430 million and said total costs including land may be $450 million to $470 million.
The Auckland-based casino operator was forced to revise its original design after the government refused to contribute to costs that ballooned out to an estimated $530 million, exceeding the initial estimate of $402 million. The new design shrank the floor space to 32,000 square meters and reduced total capacity to 2,850 visitors from 3,000.
“We are working towards concluding a building works contract later this year, having already put months of work into the tender process and with strong interest from outstanding and experienced construction firms,” chief executive Nigel Morrison.
The Auckland Council consent follows an independent board of commissioners’ determination in July that the convention centre resource consent application could be on a non-notified basis. SkyCity could now seek the amendments necessary to incorporate the design changes.
SkyCity shares last traded at $3.88 and are little changed this year.