MRDC ups Fiji stake

 MINERAL Resources Development Company’s (MRDC) new investment of FJ$8 million (K10 million) in a marina project  in Fiji has boosted its property value by 8 to 10%.

With capital infusion from MRDC, the Pearl Resort is set to become a world class tourist resort, according to chairman Sir Manasupe Zurenuoc.

Speaking at the commissioning of the Resort’s new mariner last week, he said: “I had reservations about this investment before coming here (Fiji).

“I’m now satisfied it has all the hallmarks of a successful project and the owners should be proud that their resort is the envy of others in a competitive market.”

The new facility was designed by Australian-based Marina International, designer of Singapore’s Kepple Bay Marina and Dubai’s 3km, 800- berth Marina, both first class projects.

“This facility (marina) will add considerable value to the resort’s investment. It is infrastructure investments like a marina that increase property values and as a result, we have seen an increase in our property value by around 8-10%,” Sir Manasupe said.

“Building a marina here is basically a necessity as the resort provides considerable diving, fishing and other water sport offerings as part of its package.”

The completion of the marina marks the first major milestone within the 22-month overall development programme.

Since taking over the hotel and the 200 acre freehold golf course last August, MRDC had set a course to developing a further 150 rooms in addition to the existing 80 rooms, a marina, new conference facilities, a wellness centre,  chapel and new food and beverage outlets.  

The total construction budget was FJ$85 million (K108 million), not US$99 million (K239.7 million) as reported by the media recently.

The project had sought a FJ$40 million (K50.8 million) construction loan that would improve investor returns within MRDC guidelines.

MRDC investments over the past several years had drawn political and public criticism and the recent casino debacle has forced the trustee investment company to review its investment strategy, but more importantly the management of these investments.

“It is vital that we mitigate our risks and diversify our investment portfolios,” Sir Manasupe said.

“This is one of MRDC’s first major development projects outside of PNG and engaging professionals and independent experts has been a priority for MRDC.

“Cost and programme reporting is a critical factor in ensuring that this project stays within our development expectations,” he said.

International accounting firm Ernst and Young has been engaged to conduct full quarterly audits and review financial forecasts on behalf of the board to ensure full accountability is maintained. 

“The Pearl Resort is one of the largest freehold operations in Fiji and in that context the land value on the company’s balance sheet look extremely attractive as we continue to add and improve value to the property,” Sir Manasupe  said.

Recent projected valuations as requested by Bank South Pacific indicate an ‘on-completion’ value of FJ$125 million (K158.9 million).

“Diversifying investments outside of the resource sector protects our landowner funds from volatile shocks. 

“Investing in a growing industry presents a very stable asset,” Sir Manasupe said.