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Business |
Nasfund’s investment gathers steam
By BAEAU TAI
THE National Superannuation Fund’s
investment programme that will gain high investment returns is
gathering steam.
The fund has settled the purchase of 51% of the Burns Philp
properties including the Bell Tower, two adjoining buildings and
some land in what represent the biggest purchase of land and
buildings seen in Port Moresby in years. The total land and
buildings on six titles covers some 5,191 square metres.
In a deal with the vendor Intervest Limited, 49% interest was
transferred to Mel Management Services, a company owned by Melvin
Korowi, son of the previous owner, Sir Wiwa Korowi, the former
governor-general of PNG
Total value of the buildings and land is K16 million. Nasfund’s
share was 51% of K16 million.
Nasfund’s deal represents a controlled interest on the following
terms:
*The split 51% Nasfund, 49% Mel Management Limited;
*Nasfund has sole management rights of the accounts, collection of
income and disbursements of expenses;
*Nasfund would manage or sub-let the management of the building to
its agents; and
*Pre-emptive purchase rights have been signed on the advent one of
the parties wishing to sell. The property was purchased in excess
of a net 12% passing yield after stamp duty considerations.
Settlement occurred before Easter.
In another property sale signed this month, Nasfund has committed
to purchase the four Able Computing commercial properties in Port
Moresby, Lae, Madang and Kokopo in East New Britain.
Another recent investment, Nasfund took a 10% placement in Ramu
Sugar Limitied lifting its stake to 19.70% making it the second
largest shareholder in the company after Independent Public
Business Corporation, the state asset manager.
The Ramu purchase is seen as taking advantage of the current
diversification by the company into oil palm and reducing the debt
component of Ramu Sugar associated with this on going expansion.
 
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