[COM] SkyCity Adelaide Casino Expansion | 55m | 12 Levels | Hotel

[Patrick_27]

I found this timeline below reading through their announcements. They're saying there will be a soft opening in Q1 2020 followed
by an official opening - which means the official opening might not be until mid 2020.

They must have re-negotiated the deal with the state government which required them to have it completed by mid 2019.

Do you know what scares me the most about that? Not the fact that the casino may open in 2020, but the fact that 2020 is only four years away... FOUR. Time flies when you're waiting for progress in the city of Adelaide.

[ChillyPhilly]

It's hideously scary that the futuristic-sounding year of 2020 is less than 48 months away. Wow.

[monotonehell]

It's hideously scary that the futuristic-sounding year of 2020 is less than 48 months away. Wow.

If someone does manage to build a time machine into a Delorean now, we really could go back to the future, because 2015 was last year.

[Ben]

Well this is a surprise...

S10/56/2015/1
29/09/2016
Schedule 10
Construct 9 level addition to the north of the existing casino building containing hotel entry, gaming and cafes (Plaza level) gaming and restaurants (Levels 1 and 2), hotel rooms and entry foyer, (Levels 3 - 7), gaming salons and balcony (Level , roof plant and future rooftop bar and restaurant (Level 9) as well demolition works to the northern portion of the existing heritage building - STAGE 1 - CL0 AND CL1 WORKS and STAGE 2 - PILES AND PILE CAPS

SKYCITY ADELAIDE CASINO, North Terrace, ADELAIDE SA 5000

[Llessur2002]

[Mpol]

Awesome! Great to see most of the Riverbank development now going ahead.

[Alyx]

...as well demolition works to the northern portion of the existing heritage building...

What exactly will this entail?

[Pikey]

...as well demolition works to the northern portion of the existing heritage building...

What exactly will this entail?

The Northern end is where the new extension will connect to the existing building, so there'll have to be some removal of material.

[Ben]

Skycity announced its latest profits today and in the report was the smallest mention yet I've seen of the development.

In fact it sounds like it has been delayed even further reading between the lines. What a joke this company is. Meanwhile In Perth, Sydney, Melbourne, Brisbane and the Goldcoast they are all getting massive purpose built casinos, meanwhile skycity can't even build an 11 storey extension.

[jim_c500]

Skycity announced its latest profits today and in the report was the smallest mention yet I've seen of the development.

In fact it sounds like it has been delayed even further reading between the lines. What a joke this company is. Meanwhile In Perth, Sydney, Melbourne, Brisbane and the Goldcoast they are all getting massive purpose built casinos, meanwhile skycity can't even build an 11 storey extension.

It really is hard to be optimistic about this when Skycity seems lukewarm about it at best!

[timtam20292]

I just asked on their facebook page when construction is starting and this is what they have said to me:

"Hi Christopher, construction has started. Station Road is now closed while we work on footings."

[Ben]

I believe that is what they are referring to above as "early works".

[timtam20292]

Oh well at least something is happening

[ChillyPhilly]

The Adelaide pessimist angel on my left shoulder says, 'Well... some progress is better than no progress.'

The progressive optimist angel on the other shoulder says, 'Not good enough. No confidence, no ambition from a business that has annual turnover of over $300 million.'

[Ben]

Definitely sounds in doubt to me or at the very least some time away. This is very much at odds with what they have previously stated.

SkyCity board still considering fate of the $300 million expansion of the Adelaide Casino, 12 months after it was approved

Renato Castello, The Advertiser
February 9, 2017 12:55pm

THE vaunted $300 million Adelaide Casino redevelopment is not a done deal its owner has revealed, despite receiving development approval more than a year ago for the riverside revamp.

In half-yearly financial results released today SkyCity says that the “proposed expansion” of the North Tce venue remains “under consideration” by its board.

It comes as the company has also revealed it is still in negotiations with Walker Corp to lease parking spaces in an upgraded Festival City carpark seemingly at odds to a company announcement two years ago that it had signed a deal.

SkyCity received development approval for the casino xpansion last January, which would include expanding gaming rooms, restaurants and a luxury hotel.

Last May the company told The Advertiser it remained committed to the project with site works to start in late 2016 and major construction in the second half of 2017.

A company spokesman told The Advertiser that the company remained “supportive” of the upgrade.

“Subject to final agreement with other parties involved in the Riverbank development, including the State Government and Walker Corporation,” he said.

The statement in the Half-Year Results was simply reminding investors that final sign-off by the board on the expansion has always been contingent on the successful finalisation of an greement with Walker to lease car parks in its new development adjacent our property, and various planning and regulatory issues with the State Government.

“As you’ll be aware, early works on the Riverbank Project have already started. But as with any project worth $300 million, the board retains a very close interest to ensure it is value-enhancing for shareholders.

“We do remain hopeful, however, that the outstanding issues will be resolved shortly.”

The negotiations over carparking is at odds with a statement by former SkyCity CEO Nigel Morrison that the company had reached a deal with the Walker Corp to lease 750 spaces.

The casino is relying on carpark spaces to be built as part of plans for an 80-room luxury hotel, restaurants and premium gaming areas.

The company reported a 1.7 per cent fall in revenue of $77 million, or 1.7 per cent in its Adelaide operations compared to the same time last financial year.

While earnings before interest, depreciation, tax and amortisation fell $6.6 million to $14.8 million.

“Adelaide Casino is expected to remain stable in the second half of 2017 on the previous corresponding period,” the company said.

“There is a risk of some disruption to the property from the early works (Riverbank) program, which commenced in late 2016.”

It has budgeted $9 million in FY17 for future capital expenditure on its Adelaide expansion

The venue was also the victim of a slump in SkyCity’s international and VIP business which the company said had been impacted by increased restrictions on funds transfers and reduced visits by larger customers.

Adelaide Casino’s turnover from international business had more than halved to $900,000 while EBIDTA was down 83.7 per cent from $7.4 million to $1.2 million.

Across the group international turnover was down 38.7 per cent to $4.4 billion and EBIDTA was down 68.6 per cent to $7.1 million.

SkyCity also warned that activity during the second half of 2017 was expected to be weaker in its international business on the previous corresponding period given reduced visits expected from larger VIP customers and recent developments in China.

“However, we have experienced favourable activity over the Chinese New Year period to-date,” the company said.

SkyCity, which operates casinos in Auckland, Adelaide and Darwin, reported a 2 per cent fall in normalised net profit after tax to $83.7 million.

Normalised EBITDA was down 5.2 per cent to $168.9 million and normalised revenue down 6.4 per cent to $525.8 million.

The board declared an interim dividend of 10 cents per share.

The Advertiser has sought further comment from SkyCity.