Skycity will proceed with the expansion of its Adelaide Casino after signing a development agreement with the South Australian government.
The company said in a statement to the NZX design for the expansion had been finalised and included additional hotel rooms, new function spaces, a rooftop bar and restaurant and works to integrate the expansion and the existing property and operations.
The main work would start in the first quarter of next year and completion was expected in the third quarter of 2020.
''We remain confident in the investment thesis for Adelaide, supported by regulatory concessions agreed with the SA government. Our project represents a significant investment in the future of Adelaide and the revitalisation of the Riverbank precinct,'' the company said.
Forsyth Barr broker Suzanne Kinnaird regarded the announcement as a ''small positive'' for the company.
SkyCity had lifted projected costs for Adelaide to $A330million ($NZ352.8million) from $A300million.
''We expect this reflects some adjustments and input from new chief executive Graeme Stephens, and the delays.''
The company was seeking a fixed price contract with the tender process starting in October, she said.
It appeared the company had received the desired concessions from the government about improving premium access. No specifics were provided and Forsyth Barr would need to double-check how it compared with what SkyCity was wanting.
However, on the surface, all key areas looked to improved which was a key positive.
SkyCity also announced a goodwill impairment of $A95million for its Darwin property. It was the full value of goodwill recognised when the property was bought in 2004. The book value of Darwin was now $A195million.
