A government divestment initiative has successfully generated $3 million over a four-year period. According to the first annual report from Assets Fiji Limited, established to oversee this plan, the primary revenue source has been rental income derived from lease agreements for land not central to the operations of Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
Founded in 2015, Assets Fiji was responsible for managing the transfer of land assets from Fiji Ports Corporation. The report indicates that only port operations were divested, while the land asset remained outside of core business functions. The company has leased back the necessary assets for port operations to the two corporations mentioned.
A land title transfer and lease-back agreement was executed on November 13, 2015, for a duration of 50 years. Chairman Shaheen Ali, who also serves as the Permanent Secretary for Trade, noted that many of Assets Fiji’s tenants are located in the Rokobili Subdivision, Walu Bay. He mentioned that the company recorded a cumulative net profit after tax of $3.39 million between 2016 and 2019, and it possesses a solid balance sheet with strategic properties valued at approximately $57.38 million. The company has no external borrowing and a current liquidity ratio of 2.9 as of the end of 2019. Assets Fiji oversees 35 land titles near the ports of Lautoka, Levuka, and Suva.
In the context of partial privatization of Fiji Ports Corporation, aimed at fostering ongoing improvements and modernizations of the nation’s port facilities, the government’s divestment led to a partnership involving three entities: the Ministry of Public Enterprises with a 41 percent stake, the Fiji National Provident Fund with 39 percent, and Sri Lankan conglomerate Aitken Spence PLC holding the remaining 20 percent.
The properties acquired are primarily strategic seaport locations in Lautoka, Levuka, and Suva, which include freehold and crown leaseholds. In 2018, during the sale of the former Government Printing and Stationery Department, the government authorized the transfer of land and buildings at Viria East Road, Vatuwaqa, to Assets Fiji, which functions as a property management firm on behalf of the government. As a state-owned entity, Assets Fiji leases the land from the Ministry of Lands for subleasing purposes.