Improved Rental Income for Kontiki

Oct. 3, 2017, 6:31 a.m.


The Kontiki Growth Fund’s real estate properties received fully occupancy in 2015, while a revaluation of its property portfolio is expected this year.

The Fund held its AGM earlier this week, and noted a $0.88 m investment for a 25 percent stake in its real estate development and investment company, Halabe Investments.

Its prime residential real estate in Suva include Viti Apartments, a seven unit complex in Tamavua, the seven-storey, 14-unit Viti Tower in Wailoku, and the New 3 Villa complex, also in Wailoku.

Rental income settled at $0.86m, marking an improved performance.

It noted that Halabe’s rental income was pegged at 2007 levels but annual maintenance costs had grown substantially.

Viti Tower and Viti Apartments costs 92 percent and 67 percent higher, with examples of discrepancy in monthly rentals settling at $3.5k for the Viti Tower apartment, compared to $5.5k-$6k for an equivalent apartment built in 2015.

Its new $2.5 m villa is virtually complete and expected to make a ten percent gross yield, with 100 percent long-term tenancies signed.

The Fund noted that a submission to Government for a rent freeze waiver had been made, and that Halabe would continue to explore the sale of strata-titled apartments, where attractive offers would be received.