A divestment strategy initiated by the Government has generated $3 million over four years. According to its first annual report covering the period from 2016 to 2019, Assets Fiji Limited, established by the Government to manage this divestment initiative, reported that its primary revenue source was rental income from lease agreements for land areas not essential to the core operations of Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
Founded in 2015, Assets Fiji was responsible for overseeing the transfer of land asset interests from Fiji Ports Corporation. The report indicates that only the port operations were divested, while the land assets remained separate from the main business activities. The company subsequently leased the necessary assets for port operations back to both Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
A land title transfer and leaseback agreement was signed on November 13, 2015, with a term of 50 years. Chairman Shaheen Ali, who also serves as the Permanent Secretary for Trade, mentioned that most of Assets Fiji’s tenants are located at Rokobili Subdivision in Walu Bay. He noted that Assets Fiji achieved an accumulated net profit after tax of $3.39 million from 2016 to 2019, with its strategic properties amounting to an estimated value of $57.38 million.
The company maintains a strong financial position, reporting zero external borrowings and a current liquidity ratio of 2.9 as of the end of 2019. Assets Fiji currently holds 35 land titles near the Lautoka, Levuka, and Suva port regions.
The government’s partial privatization of Fiji Ports Corporation aimed to facilitate ongoing enhancements, expansions, and modernization of the country’s port facilities. As a result, a partnership was formed among three entities: the Ministry of Public Enterprises, which holds a 41 percent share; the Fiji National Provident Fund with 39 percent; and Sri Lankan conglomerate Aitken Spence PLC, which controls the remaining 20 percent.
The properties involved in the transfer are primarily strategic seaport areas located in Lautoka, Levuka, and Suva, consisting of both Freehold and Crown leaseholds. Additionally, during the sale of the former Government Printing and Stationery Department in 2018, the Government sanctioned the transfer of land and buildings at Viria East Road, Vatuwaqa to Assets Fiji, allowing the company to manage these on behalf of the Government. As a management entity for State land, Assets Fiji leases the land from the Ministry of Lands for subleasing purposes.