A divestment initiative established by the government has successfully generated $3 million over a four-year period. According to Assets Fiji Limited’s first annual report covering 2016 to 2019, the primary source of this revenue stemmed from rental income derived from lease agreements related to land that was not essential to the core operations of Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
Founded in 2015, Assets Fiji is tasked with managing the transfer of land assets from Fiji Ports Corporation. The report indicates that only port operations were divested through Assets Fiji while land assets remained distinct from the core business activities. The company has leased back the essential assets for port operations to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
A land title transfer and leaseback agreement commenced on November 13, 2015, for a duration of 50 years. Chairman Shaheen Ali, who also serves as the Permanent Secretary for Trade, noted that a majority of Assets Fiji’s tenants are located in the Rokobili Subdivision, Walu Bay.
“Assets Fiji recorded an accumulated net profit after tax of $3.39 million from 2016 to 2019,” Ali stated. He highlighted that the company holds a robust balance sheet, with its strategic properties and assets valued at approximately $57.38 million. Furthermore, the company has no external borrowings and maintained a liquidity ratio of 2.9 by the end of 2019. Assets Fiji possesses 35 land titles near the Lautoka, Levuka, and Suva port areas.
In line with the partial privatization of Fiji Ports Corporation, aimed at facilitating ongoing improvements, expansions, and modernization of the country’s port facilities, the government’s divestment led to the establishment of 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 stake; and Aitken Spence PLC, a Sri Lankan conglomerate, commanding the remaining 20 percent.
The properties transferred primarily consist of strategic seaport areas in Lautoka, Levuka, and Suva, which include both Freehold and Crown leasehold lands. In 2018, during the sale of the former Government Printing and Stationery Department, the government sanctioned the transfer of land and a building at Viria East Road, Vatuwaqa, to Assets Fiji, designating it as a property management entity on behalf of the government. As a holder of state land, Assets Fiji leases the land from the Ministry of Lands for subleasing purposes.