A government divestment plan has generated $3 million over four years, according to Assets Fiji Limited’s first annual report covering 2016 to 2019. Assets Fiji, established in 2015 as a special purpose entity to manage this divestment initiative, reported that its main revenue source was rental income from land leases that are not essential to the operations of Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
The report indicates that while port operations were divested through Assets Fiji, land assets were excluded from core business functions. The company arranged for the necessary assets for port operations to be leased back to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
An agreement for the transfer of land titles and a leaseback arrangement was formalized on November 13, 2015, for a duration of 50 years. Chairman Shaheen Ali, who also serves as the Permanent Secretary for Trade, noted that most tenants of Assets Fiji are located in the Rokobili Subdivision, Walu Bay.
Assets Fiji has reported an accumulated net profit after tax of $3.39 million from 2016 to 2019, and its total assets are valued at approximately $57.38 million. The company boasts zero external borrowings and a liquidity ratio of 2.9 as of the end of 2019. Assets Fiji currently holds 35 land titles in the vicinity of the Lautoka, Levuka, and Suva port areas.
In the context of the partial privatization of Fiji Ports Corporation—intended to facilitate improvements, expansions, and modernization of Fiji’s port facilities—the government’s divestment strategy led to the establishment of a partnership among three entities: the Ministry of Public Enterprises with 41 percent control, the Fiji National Provident Fund with 39 percent, and Sri Lankan conglomerate Aitken Spence PLC holding the remaining 20 percent.
The transferred properties mainly consist of strategic seaport locations in Lautoka, Levuka, and Suva, which include both Freehold and Crown leaseholds. Furthermore, during the sale of the former Government Printing and Stationery Department in 2018, the government granted the transfer of land and buildings at Viria East Road, Vatuwaqa, to Assets Fiji to manage the property on behalf of the government. As a state entity, Assets Fiji leases the land from the Ministry of Lands for subleasing purposes.