A divestment initiative established by the Government has generated $3 million over four years. The first annual report from Assets Fiji Limited, a special purpose entity created to oversee the divestment plan from 2016 to 2019, indicated that rental income from land leased out was the primary source of revenue. This land was not integral to the operations of Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
Founded in 2015, Assets Fiji was responsible for managing the transition of land asset interests from Fiji Ports Corporation. The report clarified that the divestment focused only on port operations, while land assets were excluded from the core operational structure. The company retained crucial port operation assets by leasing them back to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.
A land title transfer and leaseback agreement, valid for 50 years, was signed on November 13, 2015. Chairman Shaheen Ali, who also serves as the Permanent Secretary for Trade, noted that many of Assets Fiji’s tenants are situated in Rokobili Subdivision, Walu Bay.
“Assets Fiji reported an accumulated net profit after tax of $3.39 million for the period from 2016 to 2019,” Ali stated. “The company boasts a robust balance sheet, with strategic properties valued at approximately $57.38 million. It has no external debt and a liquidity ratio of 2.9 as of the end of 2019.” Assets Fiji manages 35 land titles located near the Lautoka, Levuka, and Suva port areas.
In terms of functionality, the Government’s decision to divest part of Fiji Ports Corporation aimed at fostering improvements, expansions, and modernization of the country’s port facilities. This resulted in a partnership involving three entities: the Ministry of Public Enterprises, which holds a 41 percent stake; the Fiji National Provident Fund with a 39 percent share; and the Sri Lankan conglomerate Aitken Spence PLC, which owns the remaining 20 percent.
The properties transferred to Assets Fiji primarily include strategic seaport locations in Lautoka, Levuka, and Suva, consisting of both Freehold and Crown leaseholds. In 2018, during the sale of the former Government Printing and Stationery Department, the Government approved the transfer of the land and building at Viria East Road, Vatuwaqa, to Assets Fiji, assigning it the role of property management on behalf of the Government. As a State landholder, Assets Fiji leases the land from the Ministry of Lands for subleasing purposes.