SkyCity wants to redevelop Adelaide Casino - at a price
by: Business Reporter Cameron England
From: AdelaideNow February 15, 2012
The concept design for the redevelopment of the Adelaide Casino Source: AdelaideNow
SKYCITY wants to build a boutique hotel with a rooftop pool overlooking the River Torrens as part of the riverbank redevelopment.
The owner of the Adelaide Casino said it wants to build a "truly world class integrated entertainment facility" including a five star hotel, signature restaurants and bars, a spa and roof top pool lounge and international VIP gambling suites.
But the company has flagged again that the State Government will have to deliver concessions for the redevelopment to go ahead.
"We are working closely with the Casino Task Force regarding the future regulatory framework for the Adelaide Casino," the company said yesterday.
"The outcome of these discussions will allow us to determine whether to proceed or not with progressing our plans for the transformation of the Adelaide Casino.
"While we are excited about the outstanding growth opportunity this transformational project potentially represents for SkyCity, shareholders should be assured that this project will only proceed if we can be confident of achieving an acceptable return on the potential investment."
The company has been in negotiations with the State Government for the past few years on the conditions surrounding any potential development, which it has previously costed at $250 million.
The company has been pushing for changes to the regulations which govern the casino, arguing the 43.5 per cent tax it pays is the highest in the nation, and that restrictions on some types of games which can be played should be relaxed.
The casino has been performing well, with SkyCity annoncing yesterday that its half year before tax profit in Adelaide was 12.9 per cent higher at $19.2 million.
Revenue was up 6.9 per cent at $82.6 million.
The casino's poker machines raked in an extra nine per cent, or $33 million, in the six months to the end of December, and table games revenue increased more than 7 per cent to $41 million.
Other aspects of the riverbank redevelopment continue to progress, with a call for tenders to design the footbridge connecting Adelaide Oval and the southern side of the Torrens open until February 28.
Expressions of interest are also being sought for private sector involvement in the revitalisation of the Riverbank precinct - a $394 million project which includes the expansion of the convention centre.
This is in addition to the $535 million Adelaide Oval redevelopment.
Preliminary works have already started at the oval, with major construction work to start after the cricket season finishes.