Projects and Properties

Projects

In the last financial year the key projects managed were the redevelopment of Greig Street building, demolition of Nadi Hotel and Retail Building, Momi Bay Resort, Natadola Beach Land Estates Stage 1 and the Holiday Inn refurbishment.

The Natadola Bay resort residential subdivision progressed smoothly over the last financial year with the first stage of the estate completed and earth works have begun on the commercial precinct. A review of the current master plan is also underway to develop Natadola and Momi to complement each other to become the premium destination of Fiji not just for tourist and residences but for Fiji residents in general.

Apart from key projects mentioned above, re-modernisation and capital works on existing properties continue to be a major focus. The continual works is necessary to maintain the integrity of the property and to add value to generate higher returns for the members. Major works to be completed include the renovations of Downtown Boulevard and FNPF Member Services, Provident Plaza central chiller system upgrade, Hugh Robinson complex upgrade in Raiwaqa and the Ganilau House in Suva. These refurbishments are expected to be completed within the 2016/2017 financial year. The new member service offices works are currently underway and they are expected to be completed in the last quarter of 2016. The new offices would create a modernized hub for customer services, pension centre and employers section to provide improved services to our members.

 

Properties

The Property portfolio consists of 19 properties, which includes 16 commercial/ retail complexes, 1 undeveloped vacant block and 2 properties under re-development. The property portfolio increased in value from $206.0 million in 2015 to close at $238.3 million in 2016. This value included the Momi Bay project valued at $57.6 million.

During the year, the Fund undertook a market valuation of the investment properties. The growth in portfolio is the result of the re-evaluation exercise undertaken by Bayley's Valuation from New Zealand. An appreciation in value of $13.81 million was booked, an increase of 15.7 per cent of the property value.

Increase in work-in-progress was also booked for various properties under development. The portfolio performance for the financial years is summarized as follows:

  • The gross rental income increased by 9.1% from $13.8 million in 2015 to $15 million to June 2016.
  • Expenses increased by 38.7% from $3.7 million in FY2015 to $5.1 million. The increase is attributed to the write-off of the holding value of Nadi Retail that is under re-development.
  • A net yield of 11.3% was achieved, reflecting the capital growth of the property. The two properties, Greig Street property and Nadi Retail are undergoing re-development while the Downtown Boulevard is under refurbishment. The two properties, Greig Street property and Nadi Retail are undergoing re-development while the Downtown Boulevard is under refurbishment.