Fletcher ructions delay $470m Auckland convention centre

An artist’s impression of The New Zealand International Convention Centre. Credit NZICC

SkyCity says it is “comfortable” with its contractual agreements with developer Fletcher Construction despite a delay in the delivery of the New Zealand International Convention Centre (NZICC).

The NZICC has been delayed by about three months and will now be completed around mid-2019.

“Fletcher Construction has provided SkyCity with an updated programme of works for the New Zealand International Convention Centre, which is still being reviewed,” said SkyCity in an annoucement to the NZ Stock Exchange.

The updated programme currently indicates practical completion for both the NZICC and the Hobson Street hotel around the middle of 2019.

“SkyCity remains comfortable with the contractual arrangements we have with Fletcher Construction and the project remains on-budget,” said SkyCity. “This slight delay will not impact on any of the NZICC’s confirmed bookings to date.”

The 33,000 sq m facility was iitially expected to be delivered in February 2019.

Fletcher Construction’s share price plunged yesterday following a profit downgrade and immediate departure of its chief executive, Mark Adamson.

Fletcher cut its full-year earnings guidance because of issues with SkyCity’s Auckland convention centre and the Justice and Emergency precinct in Christchurch. It also announced a $220m impairment against its Iplex Australia and Tradelink business units.

The company said operating earnings in the year ended June 30 were about $525m, down from $682m in 2016 and below the $610m-to-$650m range the company gave in March, when its slashed earlier guidance by about 15%.
Advertise here