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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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The fire at the New Zealand International Convention Centre in October was accidental, says Fire and Emergency New Zealand.

The blaze, which started on 22 October last year, further delayed the delivery of the beleaguered $703m convention centre and hotel project on Wellesley Street, Auckland.

“The official investigation into the cause and origin of the fire found it was inadvertently caused when the top layers of a waterproofing membrane – or cap sheet – were being laid on the roof of the convention centre,” said FENZ Te Hiku region manager Ron Devlin.

Devlin said speculation at the time that an inexperienced contractor caused the fire by leaving a blowtorch on before going to lunch was incorrect.

“This did not happen. Our investigators found all gas bottles around the origin of the fires were turned off for the lunch break. There were no inexperienced contractors working in the area at the time,” Devlin said.

“Our investigators concluded the fire started after the cardboard inner of a cap sheet roll was momentarily exposed to a flame from a worker’s gas torch and began to smoulder. After smouldering unnoticed inside the roll, an intense fire developed that burnt through the top layer of the cap sheet, and then spread across the level 7 roof membrane.”

Strong gusting winds then contributed to a rapid and significant spread of fire across the roof.

FENZ said it eliminated other possible causes of the blaze, including incendiary or deliberate lighting, and natural causes.

“The NZ International Convention Centre fire was a complex and dangerous fire and we have been focused on ensuring the investigation into its cause was comprehensive and accurately reflected what occurred on the afternoon of 22 October,” Devlin said.

He added that nn independent peer review agreed with FENZ’s findings and it was a significant step forward to have the cause and origin report completed.

FENZ was on the scene for 10 days with nearly 30 appliances and around 150 firefighters battling the blaze at its peak.

Work on the project remained stalled after contractor Fletcher Building undertook a programme to understand the scale of damage. No delivery date has been set.

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