16 Aug 2018

New completion dates for Fletcher's Auckland projects

1:30 pm on 16 August 2018

Two Auckland projects being built by the beleagured Fletcher Building will be completed late next year, about six months late.

Highrise construction generic, multistory building generic, construction generic

Photo: 123RF

The owner of the sites, Precinct Properties, has agreed to revised completion dates from Fletcher for its Auckland waterfront retail site Commercial Bay, and a new PwC Tower.

Commercial Bay will be completed in September 2019, in time for the crucial Christmas spending season, but almost six months late. Some of its retail stores were expected to open this year.

Precinct Properties chief executive Scott Pritchard said the delays were disappointing, but Fletcher was the victim of an industry wide issue and its building quality was always top-notch. Fletcher built most of Precinct's developments.

"We remain very supportive of them [Fletcher]. The quality on-site is good, the people are doing really well. Like many other contractors, they are being caught up in the pressures the construction industry is facing."

When asked if Precinct would contract Fletcher for another project, Mr Pritchard said it was no longer bidding on vertical projects so he did not need to make that decision.

Construction roadblocks have not hindered Precinct's financial performace, however.

The company announced on Wednesday another second $298 million Auckland waterfront development where its HSBC House property currently sits. The project called One Queen Street will feature a 244-room, luxury InterContinental Hotel.

It has contracted the family-owned construction company LT McGuinness to build it.

Precinct's net profit after tax for the 2018 financial year was $255m, up from $162m the previous year.

The value of its property portfolio increased by an average of 5.5 percent, adding $209m to its books. Its total portfolio is worth $2.5 billion.

Its ANZ Centre and PwC Tower and in Auckland's CBD remained its most valuable sites at $360m and $376m respectively.