Fiji land speculators

come under attack

From Sue Wendt in Suva In Suva these days real estate deals have to be big, to be worthr a mention—and by “big” I mean BIG. People are talking in millions, nothing less, and the fashionable thing now is something with at Fijian flavour.

In July alone—no, within the first two weeks of July—there was news of an agreement which could mean $300,000 a year for Fijian land owners at Nadi Bay; a proposal to develop a multi-million dollar self sufficient island resort on Mana Island; rumours that the money making Trade winds Hotel in Suva was about to be sold to Americans, along with the not-so-successful Hotel Isa Lei and the Northern Hotel chain, plus half-share in The Fijian (what a takeover THAT would be); confirmation that the Paradise Beach resort on the Coral Coast had been bought as a camp-site for workers involved in the huge Deuba develop ment, and, as if to justify all this joyful speculation, a prediction from the Boeing Corporation that Fiji might expect 200,000 stop-over visitors in 1975.

In another move, a business alli ance was formed between two com panies which own land at Natadola Beach, on the Viti Levu coast. And the plan to develop the whole Nata dola area as a tourist resort of five or six hotels was that much further ahead.

Everyone is talking in millions of dollars; the stream of overseas specu lators, with its sprinkling of genuine buyers, has widened to a flood. I was talking to a man in the Grand Pacific Hotel the other night and he said HIS client had £2 million to spend.

But he didn’t want concrete jungles, he wanted something with a Fijian flavour. It’s fashionable to say that in Fiji, just now. And sensible.

The Mana Island development is proposed by an Australian syndicate which has obtained a six-month option on a 99-year lease. The option is held in the names of Mr. J. Clarke and Mr. W. Sinclair, both of Sydney, but there are others, including a Peakhurst publican, involved.

It’s proposed to build the resort in three stages, the first involving 150 rooms, the second between 300 and 450 and the third stage combining the two.

Initial expenditure, said Mr. Clarke,

would be $1 million. “But the atmos~{ phere of Mana, which is 22 milesg; from Nadi Beach, will always bea maintained,” he added. See p. 63.

An agreement which could meanti a $300,000 annual windfall for Fijiann landowners involves Denarau Islandb in Nadi Bay and the adjacent islandsaJ of Wadigisewa, Wadigi, Nacevavou„i Vunarara, Vunasili, Vavoce an db Vaquimoto.

It is reported to have been signedb between the American-backed Com-i mercial Investment Properties Ltd.,,, registered in Fiji, and of the land-owning units of theses islands.

The Roko Tui Ba, Ratu Napolioniii Dawai, hailed the agreement as “ae golden eagle that has landed on Nadi!

Bay”. And well he might.

Other main points include: • Rentals based on $2OO per yearn per acre to apply until the end off the second year of operation for thesi first two hotels built. • After that, rentals to be 2i pen; cent, of the gross receipts, subject tos a maximum of $150,000 per year, om the combined gross proceeds of the hotels. • If a third hotel is built, thea. rental at the end of its second yearn of operation is to be H per cent, ofi* gross receipts, with a maximumrr limitation of $40,000. • If any more hotels are built th©. rental, after the end of second yearn of operation, to be 2 per cent, ofic gross receipts, subject to a 1 imitations of $30,000 per year per hotel.

The agreement also provides foie the revaluation of unimproved land>i in the lease area every 10th yean Rentals for the first 10 years hav©\ been based on a valuation of $4,000( an acre.

He added that the terms were ex x ceptional and should not be takers as a yardstick for future leasing otc Fijian-owned land.

In the agreement, Commercial Inn vestment Properties is believed to] have undertaken to lease the islandsb for a rental of $2OO per acre pera year. But $lOO of the rent for unn

developed areas will be put aside for options on shares in companies tak ing part in the development of the islands.

The agreement also calls for the granting of 5 per cent, of all stock carrying the right to participate in profits in companies developing the areas.

In a series of articles on land transactions in the Fiji Times in July, it was estimated that some 25,000 to 30,000 acres of freehold Fiji land had been snapped up by overseas in vestors since the land rush really began three years ago.

Related to the total amount of free hold land—some 446,000 acres— this makes a fairly significant hole.

Also, the land bought tends to be the land with the greatest money jarning potential.

An editorial in the Fiji Times pre licted that some of the land pur chases would result in some serious lamage to Fiji’s economy, because hey had been conducted by specu ators who merely trade in options )r in land bought cheaply, without idding anything to the productivity )f the areas involved.

Dealers in city properties also :ame under attack. The actions of ome have been the cause of spiral ing rents, which were already caus ng hardship among Suva families.

It’s not unusual for executive-level iomes to be $4OO a month in well seated suburbs; the rent for small, wo-bedroomed flats is $7O and up.

I home on the main road with a iew of Suva Harbour is currently ar sale for $30,000. It would fetch ttle more than half that in Aus ralia).

But the boom-time for speculators lay not last much longer, for the amblings of discontent have reached egCo; and the Minister of Finance, Ir. Wes Barrett, has declared verbal ar on “get-rich-quick speculators •om overseas who have no interest i the advancement of the country.”

The Minister for Natural Re lurces, Mr. D. W. Brown, has ad ised Legislative Council that the iew Zealand Land Settlement pro motion and Land Acquisition mendment Act is being studied.

The government would decide how arts of the act may be adapted to lit Fiji’s needs, Mr. Brown assured ic House.

The act—said to have stopped eculation completely—r estr i c t s rge-scale buying of land to residents : New Zealand or companies which e at least 75 per cent. New Zea nd-controlled. The final say about e sale of scenic and coastal areas ;s with the Land Valuation Court.