26 September, 2014, 12:00 am
THE Fiji Provident Fund’s properties portfolio grew by 119.8 per cent from $89.4million last year to $196.5m this year.
According to the fund’s 2014 annual report, the growth followed the acquisition of the Provident Centre in Lautoka, Mercury House and the ATH park land in Suva, and the reclassification of the Momi development land from land held for development.
“The acquisition increased the number of properties to 19, with total vacant space reduced from 8.3 per cent last year to 3.2 per cent during the year,” the fund said.
It said rental income increased by 17 per cent to $13.4m compared with $11.5m for the previous year.
“Net yield decreased by 0.42 per cent from 8.7 per cent in 2013 to 8.3 per cent for the year.
“The decrease of yield was a result of properties set aside for redevelopment and upgrading.
“Operating expenses increased by 15 per cent due to increases in rates and property insurance premiums and repairs and maintenance cost.”
FNPF had also put in place long-term redevelopment strategies to ensure that the property portfolio remained competitive in the market and to grow members’ assets.
The report said the coming year would see work commencing on the Greig Street property in Suva, known as Parshotam Building, and Nadi Hotel for redevelopment.
“The fund will continue to provide technical support to its properties and subsidiaries including Holiday Inn in Suva, Natadola InterContinental Hotel and Yatule Beach Resort.”
During the 2014 financial year, the fund worked on 40 projects. Some of the major ones included stage one refurbishment of Holiday Inn, refurbishment of Yatule Beach Resort and redevelopment of Nadi Hotel.