One of New Zealand's leading property developers said on Friday construction work at a convention centre slated to host the Asia-Pacific Economic Cooperation meeting in 2021 would not be possible for now due to a coronavirus-driven lockdown.
SkyCity Entertainment Group <SKC.NZ> also said it would lay off hundreds of its employees after being forced to close all of its casinos, hotels, bars and restaurants in New Zealand and Australia in March due to major restrictions imposed by both governments.
The NZ$703 million New Zealand International Convention Centre (NZICC), which is the country's largest project, faced a major setback late last year after a fire ripped through the complex.
At the time, the Prime Minister Jacinda Ardern said the venue would still be able to host the high-profile conference that would attract major world leaders.
But the country has been on lockdown since March 26 after a national emergency was declared to arrest the spread of the outbreak, which has infected nearly 800 people in the country, halting non-essential activity.
"No work is currently possible on the NZICC and Horizon Hotel project," Chief Executive Officer Graeme Stephens said.
He added that all other all capital development projects have been put "on hold".
NZICC is being built by New Zealand's largest construction firm Fletcher Building Ltd <FBU.NZ>.
SkyCity Entertainment said around 200 salaried staff in New Zealand were being laid off, while 90% of its workforce in Australia, totalling 1,000, has been put on leave.
It added that the New Zealand government's wage subsidy program was the reason it was not letting go of more.
But if the future state of the business remains unchanged over the next three months, the company will reduce waged staff, which could impact around 900 people, it said.
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Aditya Soni)
