A divestment initiative launched by the Government has generated $3 million over four years. The first annual report covering the period from 2016 to 2019, released by Assets Fiji Limited, a special purpose vehicle established to oversee this divestment strategy, highlighted that rental income from lease agreements on lands not essential for the operations of Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited was the primary source of revenue.
Founded in 2015, Assets Fiji was tasked with managing the transfer of land assets from Fiji Ports Corporation. According to the report, only the port operations were divested through Assets Fiji, while the land assets were separated from the core business operations of the entities. The company leases the essential assets for port operations back to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
A land title transfer and lease-back agreement was signed that began on November 13, 2015, with 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 reported an accumulated net profit after tax of $3.39 million for the years 2016 to 2019,” Ali stated. “The company possesses a strong balance sheet, with its strategic properties valued at approximately $57.38 million. It has no external borrowings and maintained a current liquidity ratio of 2.9 by the end of 2019.” Assets Fiji oversees 35 land titles near the port areas of Lautoka, Levuka, and Suva.
The Government’s divestment decision was part of a partial privatization plan for Fiji Ports Corporation, aimed at facilitating ongoing improvements and modernization of the nation’s port facilities. This partnership involves three entities: the Ministry of Public Enterprises with a 41 percent stake, the Fiji National Provident Fund with 39 percent, and Sri Lankan company Aitken Spence PLC, which holds the remaining 20 percent.
The properties transferred consist primarily of strategic seaport locations in Lautoka, Levuka, and Suva, covering both 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 building at Viria East Road, Vatuwaqa to Assets Fiji, designating it as the property management company responsible for overseeing these assets on behalf of the Government. As the manager of state land, Assets Fiji leases the land from the Ministry of Lands for subleasing purposes.