The Fiji National Provident Fund (FNPF) has responded to criticism regarding its recent purchase of a mixed-use commercial and industrial portfolio from Lyndhurst Investments Pte Limited, located at the Kalabu Tax Free Zone (KTFZ).
Last month, the pension fund announced its acquisition, which has faced backlash on social media, with detractors alleging that the fund was pressured into a $500 million deal. In a statement released yesterday, the FNPF clarified, “The fund acquired the assets from Lyndhurst in June this year for $47.5 million as part of our broader plan to build a strategic property portfolio.”
The fund emphasized that the acquisition pertains only to the property and not the associated business, underscoring the importance of understanding this distinction. The newly acquired properties span 8.2 acres and include three factory outlets and three warehouse buildings, which currently host tenants such as Lyndhurst’s garment manufacturing business Kookai, RCL Services, Hot Bread Kitchen, and Gibson Freight.
FNPF’s CEO, Viliame Vodonaivalu, hinted at future opportunities to serve the emerging business processing outsourcing (BPO) market, as well as the logistics and warehouse sectors. “Like any investment, this acquisition was guided by our Investment Policy Statement and all governance processes were followed, including an independent market valuation,” the FNPF stated.
The fund reiterated that this acquisition aligns with its mandate to diversify and establish an industrial property portfolio, aimed at generating rental income and capital appreciation to support overall investment growth.