Workers ready to break ground on convention centre

Property Editor·NZ Herald·

27 Oct, 2015 04:30 PM3 mins to read

New Zealand's biggest building business, Fletcher Construction, has just been announced as the main contractor for SkyCity's International Convention Centre. In a move widely expected, Skycity chief executive Nigel Morrison said the company had agreed the terms of a binding, $477 million contract with Fletcher Construction Company Ltd to build and complete the design of the NZICC, the 5-star, 300-room Hobson Street hotel, the retail laneway linking Nelson and Hobson streets, and 1327 carparks under the NZICC. Source: SkyCity Auckland/Facebook

Site work is about to start on the NZ International Convention Centre site, ready for a 2019 completion of the project which will include a 300-room five-star hotel and dining/shopping lane linking Nelson St to Hobson St.

Nigel Morrison, SkyCity chief executive, yesterday announced the country's biggest builder, Fletcher Construction, would be the main contractor after the company agreed the terms of a binding $477 million contract.

Auckland Council has already granted non-notified resource consent for the project.

Work will begin before Christmas on the site which is an entire city block except for the now-renovated TVNZ at the waterfront end and the Albion hotel at the opposite end.

The block spans Nelson St, Hobson St, Victoria St West and Wellesley St.

Real estate consultants JLL have been engaged to seek an external investor for the development and ownership of the hotel. Nick Hargreaves, JLL's New Zealand managing director, said he envisaged securing a preferred investor by the end of this year.

Morrison said formal signing of the two building works contracts -- for the centre and the hotel -- is expected next month "once a small number of outstanding matters have been satisfied, including finalising insurance and specific requirements under the NZICC Agreement with the NZ Government."

Mark Adamson, Fletcher Building chief executive, welcomed the deal.

"This is an amazing building and a huge opportunity. I'm honoured that SkyCity has chosen [Fletcher Construction] to be a key part of bringing this project to life," Adamson said.

Morrison said the project would take 38 months to build and would be finished by 2019.

Brett O'Riley, Auckland Tourism, Events and Economic Development chief executive, welcomed Fletcher's appointment.

"Having an Auckland-based business confirmed as the infrastructure partner ... will generate new local jobs and money in Auckland's economy. In addition to the infrastructure opportunity the NZICC supports the growth of the business events industry for Auckland -- which aims to significantly grow the sector from $236 million of direct spend to Auckland in 2013 to $430 million by 2023."

Andrew Barclay, principal of Warren and Mahoney Architects and centre design director, said the project would be "a powerful expression of our country's identity. This building will be an authentic New Zealand experience and a built embodiment of Kiwi hospitality for which NZ is famed," Barclay said.

Morrison says the company anticipated spending $471 million on the NZICC, an additional $159 million on the hotel and a further $73 million "most of which is on the new laneway, airbridge, retail fit-out and additional carparking".

The company was still considering options for financing the hotel, he said.

NZ International Convention Centre

• 3.2ha or 32,000sq m gross floor area

• Conferences for about 3000 people

• One-off events for about 4000 people

• 24 meeting rooms, 1327 car parks

• Adjacent laneway of shops and food and beverage outlets

• 38-month or three-year construction time

• Anticipated opening 2019

• 300-room five-star $159m new hotel

• Hobson St airbridge to link NZICC to SkyCity

Source: SkyCity