A divestment initiative established by the Government has generated $3 million over a four-year period. According to the first annual report from Assets Fiji Limited, which was created to manage this divestment strategy, the primary revenue source came from rental income from land leases that were not integral to the operations of Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
Founded in 2015, Assets Fiji oversaw the transfer of all land asset interests from Fiji Ports Corporation. However, it was noted in the report that only port operations were divested under Assets Fiji, while the land assets were categorized as separate from core business functions. The organization leased back essential assets for port operations to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
A land title transfer and lease-back agreement began on November 13, 2015, and is set for a duration of 50 years. Chairman Shaheen Ali, who also serves as Permanent Secretary for Trade, mentioned that most tenants of Assets Fiji are located at Rokobili Subdivision in Walu Bay.
“Assets Fiji reported an accumulated net profit after tax of $3.39 million from 2016 to 2019,” he stated. “The company’s robust balance sheet features its strategic properties and assets, which are valued at approximately $57.38 million. Additionally, the company has no external borrowings and a liquidity ratio of 2.9 at the end of 2019.”
Assets Fiji currently holds 35 land titles in the vicinity of Lautoka, Levuka, and Suva ports.
In terms of functionality, the partial privatization of Fiji Ports Corporation was intended to facilitate ongoing improvements, expansions, and modernization of the country’s port facilities. This divestment decision resulted in a partnership among three entities: the Ministry of Public Enterprises, which holds 41 percent; the Fiji National Provident Fund, with a 39 percent stake; and Sri Lankan conglomerate Aitken Spence PLC, which controls the remaining 20 percent.
The properties transferred mainly include key seaport areas located in Lautoka, Levuka, and Suva, comprising 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 buildings at Viria East Road, Vatuwaqa, to Assets Fiji for management on behalf of the Government. As a state entity, Assets Fiji leases land from the Ministry of Lands to subsequently sublease it.