A divestment initiative initiated by the Government has generated $3 million over four years. In its inaugural report covering the period from 2016 to 2019, Assets Fiji Limited, a special entity established by the Government to oversee this plan, highlighted that its primary income source came from rental agreements for land parcels not critical to the operations of Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
Founded in 2015, Assets Fiji was tasked with managing the transfer of land assets from Fiji Ports Corporation. The report indicated that only port operations were divested through Assets Fiji, with land assets remaining outside the core business activities. The company subsequently leased back essential assets for port functions to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
A land title transfer and leaseback agreement was executed beginning on November 13, 2015, for a duration of 50 years. Chairman Shaheen Ali, who also serves as the Permanent Secretary for Trade, stated that the majority of Assets Fiji’s tenants are located in the Rokobili Subdivision in Walu Bay.
“Assets Fiji has achieved an accumulated net profit after tax of $3.39 million for the years 2016 to 2019,” he noted. “The company boasts a robust balance sheet, with strategic properties and assets valued at approximately $57.38 million.” He also mentioned that the company has no external borrowings and a liquidity ratio of 2.9 as of the end of 2019.
Assets Fiji currently holds 35 land titles near the ports of Lautoka, Levuka, and Suva.
Under the partial privatisation of Fiji Ports Corporation, which aims to ensure ongoing improvements and expansions of Fiji’s port facilities, the Government’s divestment decision resulted in a partnership involving three entities: the Ministry of Public Enterprises with 41%, the Fiji National Provident Fund with 39%, and Sri Lankan conglomerate Aitken Spence PLC controlling the remaining 20%.
The properties transferred mainly include vital seaport areas in Lautoka, Levuka, and Suva, consisting of both freehold and crown leaseholds. In 2018, during the sale of the former Government Printing and Stationary Department, the Government sanctioned the transfer of land and buildings at Viria East Road, Vatuwaqa, to Assets Fiji, designating the company to manage it on behalf of the Government. As a state entity, Assets Fiji leases land from the Ministry of Lands for subleasing purposes.