Fletcher Building Limited (ASX: FBU, NZX: FBU) today confirmed the completion and handover of the New Zealand International Convention Centre to SkyCity Entertainment Group (ASX: SKC, NZX: SKC), ahead of operational commissioning in readiness for a targeted February 2026 open. SkyCity Convention Centre signalling Practical Completion. The convention centre reached Practical Completion on 04 November 2025, concluding one of the most remarkable construction adventures in a decade.
The finish is a big win for Auckland and the New Zealand economy. The Fletcher Building NZICC project is designed to accommodate conferences and events for up to 4,500 people post-opening.
Figure 1: The Fletcher Building headquarters
A Decade-Long New Zealand International Convention Centre Saga Reaches Completion
The New Zealand International Convention Centre was initially expected to be built over a three-year period from the contract signing in 2015. The project has spent nearly a decade reaching that point.
Before the October 2019 fire, there had been an estimated 4.8 million working hours on the Fletcher Building NZICC project. An additional 9.7 million working hours have been carried out since the fire, underscoring the immense scale and complexity of the rebuild.
Figure 2: The 2019 SkyCity Convention Centre fire that caused extensive structural damage.
Extensive structural damage was sustained in the 2019 fire, which called for a complete area to be demolished, remediation of flooding, and mould treatment. These events transformed an already massive project into one of the most technically challenging endeavours in the country’s history of construction.
Inside the SkyCity Convention Centre: Capacity, Flexibility and Event Capabilities
The SkyCity convention centre will be New Zealand’s largest and most versatile conference, exhibition and entertainment space when it opens its doors to the public in February 2026.
Important features of the New Zealand International Convention Centre include:
- A 2,850-seater divisible theatre, the largest seated auditorium in the country
- 6,674 square metres of multipurpose hall that can accommodate 3,300 people for banquets
- 2,700 square metres of dedicated meeting space
- Maximum Capacity 4,500 guests, depending on set-up for various events
- State-of-the-art facilities built with the complete range of construction materials
Figure 3: Exterior view of the New Zealand International Convention Centre ahead of public opening.
The facility features an array of Fletcher Building’s own product portfolio, including GIB Braceline, GIB Fyreline, GIB Toughline, and GIB Weatherline systems, which are incorporated into the varying structures.
Financial Implications Behind the SkyCity Convention Centre Completion
Fletcher Building has previously announced several additional cost provisions of NZD 15 million to complete the NZICC in FY25 and recorded these, following earlier provisions of NZD 150 million around HY23.
In its FY25 Annual Result presentation, the company confirmed the NZICC is Fletcher Construction’s last vertical construction project after a strategic decision to withdraw from this sector in 2021.
Figure 4: Revenue and EBIT performance comparison for FY24 and FY25.
Fletcher Building recorded revenue of NZD 7.0 billion for the 12 months ended 30 June 2025. This is 9% down from NZD 7.683 billion in FY24. The company reported an EBIT of NZD 384 million, compared to NZD 509 million in the previous year.
Legal Disputes and Insurance Recoveries for Fletcher Building NZICC
The NZICC handover comes amid continuing legal wrangling. In June 2025, SkyCity Entertainment Group lodged a claim for NZD 330 million in damages due to lost earnings from the delayed project, claiming breaches of contract, gross negligence and persistent failure to meet its obligation linked to the 2019 fire.
Fletcher Building says it will vigorously defend the claim, adding that it has already paid significant liquidated damages under the contract. The company is also seeking recovery of more than NZD 100 million in recoveries under its Third Party Liability insurance policy. It has initiated legal action against roofing membrane building subcontractors implicated in the 2019 fire, currently underway in the High Court.
Economic Impact and Tourism Benefits of the SkyCity Convention Centre Opening
The proposed SkyCity convention centre can bring strong economic benefits for both Auckland and the New Zealand economy.
Minister of Tourism and Hospitality Louise Upston said this world-class facility will attract more visitors to New Zealand and help them host top events, which in turn means more people staying in the regions, spending local tourism dollars and driving business.
Figure 5: Fletcher Building construction workers at work.
SkyCity Chief Executive Officer Jason Walbridge said the company is now preparing for its opening in February 2026, which includes the hiring of key personnel and even more exciting ideas to mark the opening day for visitors.
The New Zealand International Convention Centre will rival some of the region’s largest convention centres in the Asia Pacific. This can establish Auckland as the destination for international conferences, exhibitions, festivals and entertainment acts.
Market Outlook
Fletcher Building expects subdued operating volumes through FY26, affecting operating leverage and profitability. Looking at New Zealand, merchant sales continue to be lower than in prior years, with 12-month rolling sales below peaks of 2022-23. Australian indicators are mixed, with dwelling completions easing while new house construction is still weak. 
Figure 6: Fletcher Building Chief Executive Officer Andrew Reding
Andrew Reding commented that sustained cost measures will support profitability, although adverse marketplace conditions will continue to exert pressure on leverage over the year. Despite short-term challenges, recent long-life asset investments position the company for stronger leverage when markets recover.
