The Government’s divestment plan has generated $3 million over a four-year period. According to the first annual report covering 2016 to 2019, Assets Fiji Limited, a special purpose vehicle established to oversee the divestment, reported that rental income from lease agreements of non-core land for Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited was the primary revenue source.
Established in 2015, Assets Fiji was responsible for managing the transfer of land assets from Fiji Ports Corporation. The report indicated that only port operations were divested through Assets Fiji, while the land assets were kept separate from the core business. The company subsequently leased necessary assets back to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
A land title transfer and leaseback agreement was executed on November 13, 2015, with a term of 50 years. Chairman Shaheen Ali, who also serves as Permanent Secretary for Trade, noted that most tenants of Assets Fiji are located in the Rokobili Subdivision of Walu Bay. The company reported an accumulated net profit after tax of $3.39 million for the years 2016 to 2019 and boasts a strong balance sheet, showcasing its strategic properties valued at approximately $57.38 million. Notably, Assets Fiji has no external borrowings and a current liquidity ratio of 2.9 as of the end of 2019. It holds 35 land titles located near Lautoka, Levuka, and Suva port areas.
The Government’s divestment led to a partnership involving three entities for the part-privatization of Fiji Ports Corporation, aimed at facilitating ongoing improvements and modernization of port facilities. The ownership structure includes the Ministry of Public Enterprises with 41 percent, Fiji National Provident Fund with 39 percent, and Sri Lankan conglomerate Aitken Spence PLC with the remaining 20 percent.
The properties transferred include key seaport areas in Lautoka, Levuka, and Suva, consisting of Freehold and Crown leaseholds. In 2018, during the sale of the former Government Printing and Stationery Department, the Government approved the transfer of land and buildings at Viria East Road, Vatuwaqa, to Assets Fiji as its property management company to oversee and manage on behalf of the Government. As a manager of state land, Assets Fiji subleases land from the Ministry of Lands.