SkyCity and state agree the preliminary design of NZICC

Monday 25th of May 2015

Economic Development Minister Steven Joyce and SkyCity CEO Nigel Morrison announced that the company and the state have agreed the preliminary design, and executed an amended agreement, for the development of the New Zealand International Convention Centre.

The design is for a slightly smaller centre than initially planned, the company said, due to costs overrunning.

“We are pleased to have finalised and agreed the Preliminary Design with the Crown. I believe the architects and designers have done an outstanding job and we are very proud of the exceptional design. While the revised design is for a slightly smaller centre, its design ensures it will be a landmark building for Auckland and New Zealand,” said Morrison.

The preliminary design for the NZICC building, as agreed, will see a 32,000 sqm gross floor area and a plenary with 2,850 seats - just 150 fewer seats than originally planned.

The building will also feature an exhibition hall able to host banquets of up to 3000 people, and a laneway offering cafes, restaurants, bars and retail.

SkyCity said the key amendments to the building’s development included an increase in the company’s minimum capital investment from $402 million to $430 million and an agreement between the parties that, to expedite the construction, SkyCity will have greater responsibility for managing the design, procurement and construction processes.

“Based on the revised Preliminary Design, SKYCITY estimates that the total project cost of the NZICC (as defined in the NZICC Agreement) will increase over and above the original $402 million, to now be in the range of $450-470 million (including land).”

“The reduction from the previous upper estimate of $530 million, announced in December 2014, reflects a significant reduction in the allowance for future construction cost escalation and reduced cost associated with the revised Preliminary Design.”

In addition to the NZICC, SkyCity will, at its own cost, construct the new laneway space and increase the total car parks under the NZICC to 1,415. Including the laneway, the additional car parks, plus other fees and costs and all the land, SkyCity’s investment in completing the development is estimated to be $540-$560 million.

“Excluding the investment made to date of $113 million, the vast majority of which relates to the land assembled for the development, the future capital commitment of completing the development is estimated at $430-450 million.”