$3m investment
VB Holdings Ltd (VBH) has acquired the Bidesi and Sons Building on Waimanu Rd, Suva investing $3 million (VIP) into the property.
According to a statement from the company, the investment for the Bidesi and Sons Building fulfilled an important stated objective for the company to increase its property portfolio.
This additional investment increases VB Holdings Ltd’s property portfolio to approximately $10m of assets under management, while total assets including fleet will exceed $20m. The company stated its current fleet assets were 62 per cent of the portfolio while property assets were 38 per cent.
With this acquisition, the ratio between fleet and property assets was stated to be approximately 50/50.
The company stated at the time of listing in 2001, the company only managed property assets and had introduced a new line of business for Fiji with fleet management services.
It also had over the past 20 years invested substantially in fleet assets. The board had declared its desire to increase its property asset portfolio a few years back according to the company and has been on the lookout for a commercial property which met its criteria, with potential for further development in the near future.
It stated Bidesi and Sons was a well known and regarded construction company in Suva, which had contributed to the Suva landscape and constructed many residential and commercial buildings in the city.
The Bidesi family owned a large property portfolio throughout Suva and have recently relinquished some of their properties.
VB Holdings Ltd and Bidesi and Sons were stated to be pioneer businesses on Waimanu Rd, which gained prominence from the 1940s.
It stated it was only fitting that VBH succeeded in acquiring this property once it became available for sale.
VB Holdings Ltd stated it would not be required to obtain debt or equity financing as it had sufficient cash reserves to fund the acquisition.
VB Holdings Ltd, listed on the South Pacific Stock Exchange (SPX), is an asset management company which manages only two classes of assets, property and fleet assets.