Government is working towards selling its 10 foreign-mission properties to the Fiji National Provident Fund by next year.

Minister for Finance, Aiyaz Sayed-Khaiyum, announced this during the 2016 National Budget announced on Friday.

The foreign mission properties are located as follows:  four in New Zealand, two in Australia, three in the United Kingdom and one in Brussels.

Mr Sayed-Khaiyum said the sale of foreign-mission properties will increase FNPF’s foreign investment portfolio for the benefit of its members.

At the same time, he said it will reduce Government’s management and maintenance obligations for offshore properties but also keep these properties in the hands of Fijians.

FNPF chairman, Ajith Kodagoda, said the initiative to sell the properties was discussed about two years ago.

But, he said they had some problems in trying to get the legal opinion whether a private institution like FNPF can own diplomatic missions outside.

“That is why it has taken time but we hope to complete the transaction next year,” he said.

Benefit with sale

One of the benefits with buying these properties for FNPF means it will give them an opportunity to invest the money outside and get returns for members.

“Currently majority of our investments are in Fiji – but through this, legally we can own some properties in London, some in Australia, New Zealand and Brussels,” Mr Kodagoda said.

He stressed that with overseas real estate, you can’t lose in the long run.

On the short run, it may not generate a lot of interest but Mr Kodagoda added:

“The London and Brussels properties are prime properties. London it is currently right next to the Buckingham Palace area. So if members can have some interest in property overseas, why not?”

Mr Kodagoda said from Government’s point of view, they can pay FNPF rental.

He said governments were not good at looking after and renovating properties, such as these.

“So you hand that over to FNPF – we get the benefit of owning the property and collecting rent and Government has the benefit of having their property looked after by someone else,” he said.

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