Adelaide's Premier Development and Construction Site
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https://mail.sensational-adelaide.com/forum/viewtopic.php?t=4649
They are not even close to a final plan yet, all Skycity have done is release concept drawings. Given that they have reached regulatory agreement with the government, we should expect a serious proposal for DAC approval this year.DaShyFreak wrote:Were water features decided to be added in the final plan? That is something which is highly impressive in my eyes and not present in Adelaide.
Oh god! Really? I have been under the wrong impression for a long time thenml69 wrote:They are not even close to a final plan yet, all Skycity have done is release concept drawings. Given that they have reached regulatory agreement with the government, we should expect a serious proposal for DAC approval this year.DaShyFreak wrote:Were water features decided to be added in the final plan? That is something which is highly impressive in my eyes and not present in Adelaide.
Thanks for that Nort and ml69! Well I certainly hope they do add water features 
Sounds promising then, but ideally I'd like to see something better than stock standard. Still though, if it did include those things then it would represent a significant improvement on what's there now.[Shuz] wrote:From what I understand there is a proposal to include cinemas as part of the redevelopment (or in a seperate redevelopment altogether of the Adelaide Railway Station Building itself). I am sure that the expansion will include nightclubs and eateries at the ground level, with the expanded casino and hotel rooms located in the levels above - it's pretty stock standard for casinos these days, new or existing ones being redevelope, to include other attractions than just being purely a casino.pushbutton wrote:To be as good as Crown Casino it would have to at least have cinemas, lots of shops, nightclubs, and 2 food courts plus other entertainment and spectacular water and fire features. So far I haven't seen any suggestion that they're even thinking of such things.
SkyCity's high stakes Adelaide gamble
Saturday 26 January 2013
An artist's impression of the SkyCity Adelaide casino development, which is aimed at attracting more high-rollers to the tables.
SkyCity Entertainment Group's A$350 million riverside Australian development is forecast to increase annual pre-tax earnings by A$62 million in five years.
Morningstar analyst Nachi Moghe predicted A$3 billion annual VIP turnover from Adelaide in 2018, generating A$41 million revenue.
The Auckland-based company's deal was transformational and once its Australian push was completed the gaming business would enjoy a significant jump in revenue, Moghe said.
"We forecast Adelaide's ebitda to increase by A$62 million on an incremental basis by 2018, implying a post-tax return on investment of 10.5 per cent which will rise to 18.3 per cent by 2022.
"We are increasing our valuation to $4.70 per share, mainly driven by Adelaide's expansion and the roll-forward of our earnings model.
"Consequently the stock appears undervalued compared to our intrinsic value," he said, putting an accumulate recommendation out until the share price gets to $4.23.
SkyCity, with a market capitalisation of $2.3 billion, has been trading up at $3.99 although Moghe said the entire expansion would be funded by debt so gearing would rise from 2.3 times ebitda to 2.4 times in 2016 before trending downwards.
"This is within the company's banking covenants of 2.7 times," he said, projecting net after-tax profit of $146.8 million from $894.1 million revenue in 2013, rising to $164.7 million on revenue of $1 billion by 2015.
The redevelopment will run from 2014-16 and the addition of new gaming machines and tables will dramatically change the revenue mix in favour of premium VIP customers.
About 200 electronic gaming machines will initially be installed, then a further 305 machines with an extra 110 tables.
The existing casino's archaic coin-based gaming system, higher taxes on electronic gaming machines and the lack of restaurants and bars meant VIP players shunned it, Moghe said.
New VIP areas would be modelled on Auckland's Horizon suite with about 16 tables. That had been a big success, instrumental in boosting VIP revenues from $26 million in 2011 to $51 million last year.
Problem Gambling Foundation chief Graeme Ramsey said SkyCity was unable to expand its casino operations in New Zealand so it was no surprise it looked to other jurisdictions.
Moghe remained bullish about Auckland, which generates 60 per cent operating profit, noting how the Government's blanket ban on new casino licences meant SkyCity faced little competition.
"This has allowed the company to operate at very healthy profit margins and generate abundant cash flows. Judicious investments are being considered to lift growth in the longer term."
Moghe also remained hopeful SkyCity would expand its presence in Auckland, predicting an increase of 70c a share if it wins the right to build the National Convention and Exhibition Centre. SkyCity shares closed down 2c yesterday at $3.98.
Adelaide ambitions
• Existing casino to be expanded.
• 150-room, six-star boutique hotel.
• Celebrity restaurants by 2016.
• VIP gaming suites and salons.
• Reconfigure existing building to add 200 new machines.
• New building for 305 machines, 110 tables.
Source: Morningstar Equity Research
In my opinion, I wouldn't expect anymore entertainment facilities than has already been stated. Similar casino redevelopments in Australia such as Crown Perth ($500M+) and Star City in Sydney ($800M+) both feature luxury hotels, VIP gaming facilities, celebrity/signature restaurants, nightclubs and bars like the Skycity proposal (perhaps with some token luxury retail stores) but that's about it.DaShyFreak wrote:Surely they wouldn't spend that much money and not add more entertainment?