Nasfund ‘hot’ on Fiji

 PAPUA New Guinea’s institutional and private investors’ participation in Fiji has increased markedly since 2011, National Superannuation Fund chief executive officer Ian Tarutia told an accountant conference recently.

Addressing the Fiji Institute of Accountants Congress at the Sheraton Fiji Resort on Denarau Island last weekend, Tarutia said one such investment was the joint venture between Nasfund, Lamana Development and Fiji National Provident Fund in the much-anticipated FJ$90 million (K104 million) investment redevelopment of the five-star Grand Pacific Hotel in Suva, expected to be completed by the end of this year. 

Grand Pacific Hotel Suva is 50% owned by Nasfund and 25% each by Lamana Development and Fiji National Provident Fund. 

“Nasfund’s board of directors adopted three fundamental issues in their decision to invest in Fiji –  the quality of their joint venture partners, hotel management capability and the Melanesian connection with Fiji,” Tarutia said. 

“For Nasfund, with its high growth, excess liquidity and limited opportunities in conformance with its investment guidelines in the PNG economy, other jurisdictions had to be explored. 

“Importantly, portfolio diversification from single country risk is another consideration Nasfund takes into account. 

“With the after-affects of the global financial crisis still reverberating in the western world, the Pacific region, which remains unscathed, was a natural area for opportunities,” the Nasfund CEO said.

Tarutia said the fund’s first-ever investment in Fiji — the Grand Pacific Hotel redevelopment — has been a catalyst of much-needed economic activity in Suva since works started in 2011. 

The hotel facility was initially built by the Union Steamship Company in 1904.