Land sold by TVNZ to SkyCity for $10 million to help build a convention centre has been valued at $28 million – less than two years later.
The boost in value came after the casino company decided to build its hotel on the former TVNZ land instead of using it for the convention centre – a ‘switcheroo’ revealed by the Herald.
It can also be revealed that SkyCity has reserved the right to operate bars, restaurants and retail areas throughout the controversial convention centre once it is built, in an agreement with the Government.
At the launch of the centre’s new design yesterday SkyCity chief executive Nigel Morrison said the increased land value was a major factor in the agreed minimum input from the casino company rising from $402 million to $430 million.
The valuation is believed to include a weighting based on its intended use as a hotel and its key position in the convention centre.
Even on straight land value increase – the section has gone up 22 per cent in just 20 months – from $14.3 million to $17.5 million.