A divestment initiative established by the government has generated $3 million over the past four years. According to its first annual report covering 2016-2019, Assets Fiji Limited, a special purpose entity created by the government to oversee the divestment plan, reported that its primary source of revenue came from rental income from leased land areas that were not essential 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 asset interests from Fiji Ports Corporation. However, the report indicated that only port operations were divested under Assets Fiji, while land assets remained separate from core business activities.
The company has leased back the assets necessary for port operations to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited. A land title transfer and leaseback agreement were formalized 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. According to Ali, Assets Fiji recorded a net profit after tax totaling $3.39 million from 2016 to 2019. The company’s robust balance sheet includes strategic properties valued at approximately $57.38 million. Additionally, Assets Fiji has no external debts and a liquidity ratio of 2.9 as of the end of 2019.
Assets Fiji oversees 35 land titles in proximity to the Lautoka, Levuka, and Suva port areas.
The part privatization of Fiji Ports Corporation aimed to facilitate ongoing improvements, expansions, and modernization of Fiji’s port facilities. The government’s divestment strategy resulted in a partnership involving three entities: the Ministry of Public Enterprises, which holds a 41 percent stake; the Fiji National Provident Fund with 39 percent; and Sri Lankan conglomerate Aitken Spence PLC, which controls the remaining 20 percent.
The transferred properties mainly comprise strategic seaport areas 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 land and buildings at Viria East Road, Vatuwaqa, to Assets Fiji. As a property management entity, Assets Fiji manages these assets on behalf of the government. As state land, Assets Fiji leases the property from the Ministry of Lands for subleasing purposes.