A divestment initiative implemented by the Government has generated $3 million over four years. The first annual report, covering the period from 2016 to 2019, revealed that Assets Fiji Limited, a state-created entity tasked with overseeing the divestment process, primarily earned revenue from rental income obtained through lease agreements for land areas that are not central to the operations of Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
Assets Fiji was formed in 2015 to manage the transfer of all land asset interests from Fiji Ports Corporation. According to the report, only port operations were divested by Assets Fiji, while land assets were classified as separate from the core business activities. The company subsequently leased essential assets for port operations back to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
The land title transfer and leaseback agreement came into effect on November 13, 2015, and is set for a duration of 50 years. Shaheen Ali, the Chairman and Permanent Secretary for Trade, noted that many of Assets Fiji’s tenants are located in the Rokobili Subdivision, Walu Bay. During the years 2016 to 2019, the company accumulated a net profit of $3.39 million after tax. The report indicated that Assets Fiji boasts a robust balance sheet, with strategic properties and assets valued at approximately $57.38 million, no external debts, and a current liquidity ratio of 2.9 as of the end of 2019. Assets Fiji currently manages 35 land titles close to the Lautoka, Levuka, and Suva port areas.
The Government’s decision to privatize Fiji Ports Corporation aimed to facilitate ongoing advancements and modernization of Fiji’s port infrastructure. This decision led to a partnership involving three entities: the Ministry of Public Enterprises, which holds a 41 percent stake; the Fiji National Provident Fund, with a 39 percent share; and Sri Lankan conglomerate Aitken Spence PLC, which controls the remaining 20 percent.
The properties transferred are mainly strategic seaport locations in Lautoka, Levuka, and Suva, encompassing Freehold and Crown leaseholds. In 2018, during the sale of the former Government Printing and Stationary Department, the Government authorized the transfer of land and buildings located at Viria East Road, Vatuwaqa, to Assets Fiji for management on behalf of the Government. As a state entity, Assets Fiji leases land from the Ministry of Lands to sublease it accordingly.