Covid-19 coronavirus: Commercial Bay grand opening canned

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Precinct Properties' $1 billion Commercial Bay shopping complex will no longer open later this week as planned due to coronavirus.

The property company was in the final stages of completing construction for the three-level inner-city shopping and dining complex, which was expected to open on March 28.

A string of new-to-market international retailers were gearing up to open the doors to their first New Zealand store in Commercial Bay this month, including London-based fashion retailer Cos, Australian apparel retailer Husk and Tommy Hilfiger, along with about 120 retailers and 35 food and beverage operators.

The opening has been deferred indefinitely, following a string of earlier delays in opening, as the number of confirmed cases of Covid-19 in New Zealand continues to rise.

In a market update this morning, Precinct Properties said that all of its buildings and construction sites were in the process of being closed, including its Wynyard Quarter and Commercial Bay precincts in Auckland.

It said all of its office, in Auckland and Wellington, and its Generator business, would be closed until "further notice".

"The closure of construction sites will inevitably result in delays to the completion of Commercial Bay and Wynyard Quarter. While the cost of the delay will depend on the duration of the closure, Commercial Bay is close to completion which will help limit the impact of the interruption," the company said in its trading update.

While the impacts of COVID-19 continue to evolve, we will continue to actively implement our business continuity plans to ensure the right procedures and suitable precautionary measures are in place to help protect the health and well-being of all our people, while also restricting any potential negative impacts on the business.

The Herald has contacted Precinct Properties chief executive for comment.

The company said it remains in a strong financial position.

"While the impacts of COVID-19 continue to evolve, we will continue to actively implement our business continuity plans to ensure the right procedures and suitable precautionary measures are in place to help protect the health and well-being of all our people, while also restricting any potential negative impacts on the business," it said.

"While the negative impacts from the COVID-19 pandemic cannot yet be known and there are risks to the downside, Precinct expects FY20 earnings to be materially in line with previous guidance and to maintain its dividend at 6.30 cps."