A divestment plan established by the government has generated $3 million over four years. According to the first annual report covering 2016-2019 from Assets Fiji Limited—an entity created by the government to manage this divestment plan—the main source of revenue came from rental income derived from lease agreements relating to land not crucial to the operations of Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
Founded in 2015, Assets Fiji was responsible for overseeing the transfer of all land interests from Fiji Ports Corporation. The report indicated that only the port operations were divested by Assets Fiji, with land assets maintained outside core business functions. The company leased necessary assets for port operations back to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
A land title transfer and leaseback agreement were executed starting November 13, 2015, lasting for 50 years. Chairman Shaheen Ali, who is also the Permanent Secretary for Trade, noted that most of Assets Fiji’s tenants are located in the Rokobili Subdivision of Walu Bay.
“Assets Fiji recorded an accumulated net profit after tax amounting to $3.39 million for the years 2016 to 2019,” he reported. “The company’s robust balance sheet features its strategic properties and assets valued at approximately $57.38 million. Additionally, the company has no external debts and concluded the year 2019 with a current liquidity ratio of 2.9.”
Assets Fiji controls 35 land titles near the regions of Lautoka, Levuka, and Suva port areas.
In the context of the partial privatization of Fiji Ports Corporation—which aimed for ongoing enhancements, expansions, and modernization of Fiji’s port facilities—the government’s divestment led to the creation of a partnership among three entities: the Ministry of Public Enterprises, which holds 41 percent; the Fiji National Provident Fund with 39 percent; and Sri Lankan conglomerate Aitken Spence PLC, which has a 20 percent stake.
The properties transferred are primarily strategic seaport areas located in Lautoka, Levuka, and Suva, encompassing both freehold and crown leaseholds. During the sale of the former Government Printing and Stationery Department in 2018, the government approved the transfer of the land and building at Viria East Road, Vatuwaqa to Assets Fiji, which serves as a property management company for government oversight.
As state land, Assets Fiji leases the land from the Ministry of Lands to manage subleases.