The Fiji National Provident Fund (FNPF) has defended its recent acquisition of a mixed-use commercial and industrial portfolio located at the Kalabu Tax Free Zone (KTFZ) from Lyndhurst Investments Pte Limited. The deal, which was announced last month, has faced criticism on social media, with some detractors alleging that the fund was pressured into what they described as a $500 million transaction.
In a statement released yesterday, FNPF clarified that the assets were purchased from Lyndhurst in June for $47.5 million as part of a broader strategy to build a strategic property portfolio. The fund emphasized that the acquisition pertains solely to the property and not the business, which remains entirely separate. FNPF urged members and stakeholders to recognize this distinction and avoid misunderstanding the nature of the acquisition.
According to FNPF’s previous announcements, the properties encompass 8.2 acres of land and include three factory outlets and three warehouse buildings, with existing tenants such as Lyndhurst’s garment manufacturing operation Kookai, RCL Services, Hot Bread Kitchen, and Gibson Freight.
Viliame Vodonaivalu, CEO of FNPF, highlighted the potential to cater to the growing business processing outsourcing (BPO) market, as well as opportunities within the logistics and warehouse sectors.
FNPF stated, “Like any investment, this acquisition was guided by our Investment Policy Statement, and all governance processes were followed, including an independent market valuation.” The organization emphasized that the acquisition aligns with its mandate to diversify and develop an industrial property portfolio intended to generate rental income and capital appreciation, contributing to the overall growth of the investment.