The $330 million redevelopment of Adelaide Casino is finally underway after two 123-meter-high cranes moved into place on June 23.
Work at the Riverbank site was finally able to start after SKYCITY Entertainment Group signed a construction agreement with Hansen Yuncken.
With everything now in place, the project is scheduled to run for 27 months before the doors officially open in the first half of 2021.
A Hub for International VIPs
When the building is complete, Adelaide Casino will feature a selection of bars, restaurants and cafes, as well as a new hotel tower. Additionally, the gaming floor will be extended beyond its current capacity to offer 500 more poker machines and 110 extra gaming tables.
As well as improving the facilities for locals and bringing more jobs to the area, former SKYCITY chief executive Nigel Morrison said the venue would become an international tourist attraction.
“Developing a complex that boasts luxurious VIP facilities, along with outstanding accommodation and signature dining experiences, attracts both international and domestic visitors. Our Adelaide Casino development will help South Australia attract a greater share of high-value international visitors, particularly from China and South-East Asia,” Morrison told The Advertiser back in November 2015.
SKYCITY Looking to Parlay Its Profits
In February, SKYCITY Entertainment reported that profits for the six months to December 31, 2017, were up by 11.6 percent. Despite mitigating factors, a better than expected win rate against international high rollers saw the company generate a normalised net profit after tax (NPAT) of $86.7 million.
“Despite ongoing disruption from capital works in Auckland and Adelaide and a slightly less favourable New Zealand economic environment, we remain confident we can continue to deliver growth from our existing assets as well as the new projects in the pipeline,” CEO Graeme Stephens wrote in a February 9 press release.
With the company managing to turn a profit in the face of potentially disruptive circumstances, executives will be hopeful the Adelaide Casino project will generate even more revenue. To start with, contractors will prepare the site before bringing in the necessary materials to start to redevelopment work.
In an effort to protect its $330 million investment, SKYCITY executives have said that 90 percent of the costs are fixed as part of the contract, which means Hansen Yuncken are liable for any shortfall.
The casino group will have control over the remaining 10 percent of the money which has been set aside as “provisional” funds for things such as fixtures and fittings.