A divestment initiative by the Government has generated $3 million over four years. According to the first annual report from 2016 to 2019 by Assets Fiji Limited, a government-created entity for managing the divestment plan, the primary revenue source was rental income from lease agreements on land that was not part of the core operations for Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
Established in 2015, Assets Fiji oversaw the transfer of land assets from Fiji Ports Corporation. The report noted that only port operations were divested under Assets Fiji, while the land assets were retained from the core business activities. 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 began on November 13, 2015, with a term of 50 years. Chairman Shaheen Ali, who is also the Permanent Secretary for Trade, highlighted that most tenants of Assets Fiji are located at Rokobili Subdivision, Walu Bay. Ali reported that Assets Fiji achieved an accumulated net profit after tax of $3.39 million from 2016 to 2019 and has a strong balance sheet with its strategic properties valued at approximately $57.38 million. Notably, the company has no external borrowings and a current liquidity ratio of 2.9 as of the end of 2019. Assets Fiji manages 35 land titles near the Lautoka, Levuka, and Suva port areas.
As part of the partial privatization of Fiji Ports Corporation aimed at enhancing and modernizing the country’s port facilities, the Government’s divestment strategy led to a partnership involving 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 controls the remaining 20 percent.
The transferred properties largely consist of strategic seaport areas in Lautoka, Levuka, and Suva, including 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. As a property management company, Assets Fiji is responsible for overseeing and managing the land on behalf of the Government. As state land, Assets Fiji leases the land from the Ministry of Lands for sub-leasing purposes.