Fletcher gambles on casino go-ahead

Press, 11 May 1989, Page 25

Fletcher gambles on casino go-ahead

NZPA Wellington Fletcher Challenge is looking at becoming a big player in New Zealand’s new casino industry, after forming a consortium with the founders of Queensland’s largest casino. And the public is likely to get its chance too, if Fletcher keeps to its proposal and allows New Zealanders the chance to take shares in the project. In a statement yesterday, Fletcher Development and Construction said it, Jupiter Development, and Conrad International, founder-shareholders in Jupiters Casino at Surfers Paradise, had formed a consortium in the expectation that casinos would be legalised in New Zealand. Legislation to allow casinos in New Zealand is expected to be introduced in Parliament later this year, based on recent recommendations to the Government. They included proposals for two casino licences, which, Fletcher said, were expected to be made available early next year. Fletcher Development’s general manager, Mr Neil Ranford, said the consortium combined the strength and expertise of New Zealand’s largest construction company with

the highly successful casino and hospitality expertise of Conrad International and the management team of Jupiters Development. These three groups would make up the primary elements of the consortium, although the final structure could not be determined until the legislation was formally introduced. There was a possiblity that Jupiters Trust might also be involved in the project by way of financial investment. Mr Ranford said he expected that the New Zealand public would be given an opportunity of equity participation in the project if the legislation was introduced pnd the consortium was successful in obtaining a casino licence. The Government had indicated that it planned to grant two operating licences if legislation was passed and it was generally expected that a casino would be built in each of the main population centres. . The consortium was studying suitable site options and would be making further announcements as the more specific nature of the legislation ..was unveiled,”; he said; Fletcher Development’s national marketing manager, Mr Basil Chapman, told NZPA that the consortium

arose through the involvement of Fletcher Challenge’s Australian construction associate, Jennings Industries, in Jupiters Casino. Jennings, 47 per cent-owned by Fletcher Challenge, had a shareholding of about 10% in the Surfers Paradise project, which it helped develop, Mr Chapman said. Jupiters, opened in 1987, is one of two casinos in Queensland.

Conrad International is a full subsidiary of Hilton Hotels Corporation, of the United States. “Fletcher Development will also bring to the project the reputation for integrity which the legislation was likely to require.” Integrity was the critical element and it had to be there on a continuing basis, Mr Chapman said. The consortium was considering site options but did not know till the legislation arrived whether the casinos would have to be linked to hotels or other facilities. A survey of New Zealanders’ gaming activities and potential business prospects for the casinos had been commissioned by the consortium.' ; , Its interest in eventually developing and owning the casinos would be determined by the “market forces” and the requirements of the legislation.