SkyCity clear to start on centre

Skycity resource consent for the New Zealand International Convention Centre can proceed on a non-notified basis, meaning the casino operator can start construction by the end of the year.

Forsyth Barr broker Suzanne Kinnaird said the timeline was in line with Forsyth Barr forecasts and the firm remained with a neutral rating for SkyCity.

The consenting process had been very detailed, given SkyCity made its application about seven months ago and there was a very low risk regarding the final resource consent decision, which was expected in the next couple of months.

''This enables SkyCity to proceed with its intended timetable of signing a building contract by October 2015 and commencing the build by the end of 2015.

''The consent also applies to the new hotel which now enables SkyCity to actively start marketing that project to potential capital partners.''

Forsyth Barr had made a small change to its 2016 and 2017 profit forecasts, up 2% and 1% respectively due to lower consensus New Zealand-Australia dollar cross forecasts, Ms Kinnaird said.

There continued to be mounting evidence of a slowing New Zealand economy which needed to be watched closely given SkyCity had been able to leverage a near-perfect consumer environment in Auckland for several months.

SkyCity had also started a significant expansion of its Adelaide operations, an improved regulatory and tax environment and was on track to start building the convention centre by the end of the year.

Both projects were large, complex and challenging but directly related to SkyCity's core areas of expertise and leveraged the existing businesses to provide medium-term earnings upside, she said.

Recent trading had been encouraging. Operational improvements were evident at Auckland and in its international business, in particular.

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