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The Fiji National Provident Fund (FNPF) has defended its acquisition of a portfolio of mixed-use commercial and industrial prime assets in the Karabou Free Zone (KTFZ) from Lyndhurst Investments Pte Limited.
The acquisition, announced by the pension fund last month, was met with criticism on social media, with critics accusing the fund of being pressured into the $500 million deal.
“The fund acquired the assets from Lyndhurst in June this year for $47.5 million as part of our wider plan to build a strategic real estate portfolio,” FNPF said in a statement yesterday.
“Acquisitions are for property, not business, which is completely different. Members and stakeholders must understand the difference and not misunderstand acquisitions.”
The properties, which span 8.2 acres, include three factory outlet stores and three warehouse buildings, with existing tenants including Lyndhurst-based apparel manufacturing companies Kookai, RCL Services, Hot Bread Kitchen and Gibson Freight, according to FNPF’s earlier acquisition announcement.
FNPF CEO Viliame Vodonaivalu has hinted at catering to the needs of the emerging BPO market (Business Process Outsourcing) as well as the logistics and warehouse industries.
“As with any investment, this acquisition was guided by our investment policy statement and followed all governance processes, including an independent market valuation,” FNPF said.
“This acquisition is in line with the fund’s mission to diversify and build a portfolio of industrial properties that will generate rental income and capital appreciation, thereby contributing to the overall growth of the investment.”
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