FNPF faces delay in asset sales

October 11, 2009 12:25:11 PM

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Intentions by the Fiji National Provident Fund to sell off non-performing assets have been met with delays, with no serious buyers on the horizon for at least two hotel properties. 

As part of a major restructure it announced in July, the pension fund had put a number of properties in the market, but has yet to confirm any sealed deal.

“Some of our investments in hotels, like Momi, Savusau Harbourside are not performing at the moment.  What we’re trying to do is sell those so we can recover investments,” FNPF chief executive officer Aisake Taito told FijiLive. 

“There are many parties that are interested in coming in to raise their hands to say that: ‘we are here, we want to purchase your property’. But what we’re really interested in is people who can come with their cheque books.”

FNPF’s major restructure had included a review of its investment policies, where it stated intentions to divest non performing assets.

On the list were the Grand Pacific Hotel Project, Savusavu Harbourside and the massive Momi Bay project, which had gone under the hammer in August, although failing to sell. 

While some progress had been made in the Momi project sale, with negotiations said to be nearing a final sale price, progress in the other two properties have been slow. 

“For GPH, we have already put out expressions of interests last year and this year for those who wanted to purchase that, so things are continuing in terms of negotiations with interested parties,” Taito said.

 “There have been a few interested parties but we are talking to one or two serious parties.  But to be honest, the sooner we conclude all these arrangements, in terms of GPH, Momi and Savusavu, the better it is for us.”

FNPF had bought GPH in 2005, in an 80:20 equity participation with the now dismantled Fiji Investment Corporation.  It had invested $7.07 million in the venture.