Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

SkyCity deal to prepare ground for Adelaide expansion

SkyCity deal to prepare ground for Adelaide expansion

By Edwin Mitson

May 26 (BusinessDesk) - SkyCity Entertainment Group, New Zealand's only listed casino, has signed a deal with the South Australian government on preliminary works to prepare for the expansion of its Adelaide casino and the wider redevelopment of the site.

The work is expected to take place in the second half of the calendar year and the costs will be split between the company and the state. It will include modifications to Festival Drive, work on the structural piling, modifications to loading docks and the relocation of existing services.

SkyCity is planning to spend A$300 million to overhaul its Adelaide Casino with new restaurants, a hotel, and new VIP gaming areas. In November last year, former chief executive Nigel Morrison apologised to shareholders at its annual general meeting for the casino's poor performance, which he blamed on fundamental problems including the lack of a car park, a hotel for high-rollers and a critical mass of restaurants to tempt people to the area.

Interim chief executive John Mortensen said the deal was an important step: "We're delighted that we've got agreement on the first phase of work on what will be an amazing rejuvenation of the Riverbank Precinct. SkyCity's Adelaide Casino expansion will bring high-net-worth visitors to South Australia, providing a significant boost to the tourism industry".

The South Australian government has also signed a deal with the Walker Corporation to develop the nearby Festival Plaza. A car park, retail precinct and office space are to be built over the next three years.

SkyCity is currently going through a capital raising to fund the development in Adelaide and a new conference centre in Auckland. It raised $180 million from institutional investors earlier this month, with an offer to retail investors scheduled for June 7.

Shares in SkyCity were unchanged at $4.68. They've risen 6.8 percent since the start of the year.

(BusinessDesk)

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.