Fire under control at SkyCity’s major Auckland NZICC project, but months of delay ahead
UPDATED: A fire that started at Adelaide Casino operator SkyCity’s $700m construction project in NZ on Tuesday morning is now under control with firefighters continuing their now 44 hour-long battle.
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Adelaide casino operator SkyCity expects to partially resume its NZ operations starting today after firefighters gained control of a major fire at its NZ construction project after a 44-hour battle.
The site was safely evacuated on Tuesday.
In an update issued this morning, SkyCity said fire and emergency teams will be on site until the fire is completely extinguished at the $700 million NZ International Convention Centre and 330-room Horizon Hotel development in Auckland.
The site can then be handed over to Fletcher Building, the construction contractor.
“SkyCity will be opening the Auckland precinct in a phased approach starting later today and expecting to fully resume normal business operations during Friday,” SkyCity said.
The fire at the under-construction convention centre, which started on Tuesday morning, led to the evacuation and closure of the wider SkyCity Auckland precinct, including the Sky Tower, casino, SkyCity Hotel, SkyCity Grand Hotel, car park, restaurants and corporate offices for precautionary reasons.
SkyCity’s corporate offices, also in the precinct, will open on Tuesday.
SkyCity said it was committed to fully compensating employees for their cars, less than 100 of which were water damaged.
The company thanked the fire and emergency service teams for their continued efforts in what “has been very challenging circumstances”.
SkyCity chief executive Graeme Stephens said the focus of the team now is on getting the business reopened and fully operational.
“From the outset, we have shared our vision for the NZICC, New Zealand’s meeting place for the world, and we will work hard to ensure that it not only opens but provides world-class conference, exhibition and entertainment spaces for Auckland and New Zealand.”
The company said it will work with Fletchers as they investigate the damage and establish how best to rebuild.
The ICC and Horizon Hotel were scheduled for completion in late 2020.
SkyCity’s second major project is the $350 million Adelaide expansion project, which also includes a 12-storey luxury hotel, and is on track for completion late next year.
In a separate statement, Fletcher Building said the fire being under control “is just the first step in the recovery process”
“There is now a multistage process we must follow to move the project forward,” Fletcher Building chief executive Ross Taylor said.
“Once the site is handed back to us, investigations can begin to determine the cause of the fire and the extent of the damage.
“That will take some time and must be completed in a measured way and with the safety of everyone top of mind.
“We will work with fire and emergency services, SkyCity, regulators and insurers to complete these assessments.
“We will then be in a position to look at how we reset the project and determine the impact on the delivery timeline.”
He said the process would take a number of months to complete.
“We are all devastated to see the project we have worked so hard on impacted this way and while our timeline will change, our resolve will not — and together with SkyCity we remain committed to delivering a world-class convention centre for Auckland and New Zealand.”
The fire in NZ’s biggest city caused chaos on the ground with thick black smoke in the air resulting in shutting down of nearby businesses and road diversions.
The project has been marred by construction delays and there were unconfirmed reports of an unattended blowtorch used “to heat and seal waterproofing material” that started the fire on the roof.
For a number of years, SkyCity has been counting on substantial returns on its investment into the current construction projects in NZ and Adelaide.
Shares in the ASX-listed company were trading in the positive today after two days of declines at around $3.62 at 12.30pm AEST.
With AAP