SINPF BOARD ENTERS INTO AN AGREEMENT TO LEASE WITH THE AUSTRALIA DEPARTMENT OF FOREIGN AFFAIRS AND TRADE (DFAT)
The Solomon Islands National Provident Fund Board (NPF Board) is very excited to enter into an agreement to lease with the Commonwealth of Australia represented by the Department of Foreign Affairs and Trade (DFAT) for a property to be developed and owned by the NPF Board.
The property comprising of 8 town houses with shared amenities will be constructed on the vacant land owned by the NPF Board above the current Hibiscus Apartments.
Expected to cost around $75 million, it will take about 3 years to build. Upon completion, the residential complex will be rented by the DFAT a blue chip tenant for at least 11 years at a gross rental of $6,480,000 per annum or $540,000 per month or $67,500 per month per townhouse.
In 2017, the SINPF Board responded to a public expression of interest sent out by the DFAT to investors with properties that are within the vicinity of the main Government offices and close to the High Commission Office. The EOI requested investors to build a residential compound for DFAT that meet their requirements.
The NPF Board’s bid was successful and over the past 3 years the Board has been discussing with DFAT on their requirements and was amicably concluded when an investment proposal to build the complex was approved by the Minister of Finance early this year in January 2020.
A lease agreement with DFAT to be signed later when the property is expected to be completed on 30 June 2023. Rentals from this agreement will provide a fixed stream of income to the Funds property investment portfolio for the next 11 years after June 2023.
Signing on behalf of the Board is Chairman Acting Dr Aaron Oritaimae and on behalf of the Commonwealth of Australia is the Australia High Commissioner to Solomon Islands, Dr. Lachlan Straham
In his remarks Dr. Lachlan Straham says that he is looking forward to the commencement of the construction of the residential complex and the new commercial partnership with the Fund.