299 lots ready – MFL expects to deliver 2000 land lots over next three years
MERCHANT Finance Ltd (MFL) said it expects to deliver 299 residential lots from land subdivision projects it has financed so far since it set up its Vanua Finance arms last year.
In an exclusive interview with The Fiji Times, Merchant Finance chief executive officer Veilawa Rereiwasaliwa said MFL’s pipeline of land subdivision projects will see it deliver an additional 2000 land lots over the next three years.
“Vanua Finance was launched in July last year and their purpose is to provide finance to iTaukei-owned businesses,” Mr Rereiwasaliwa said.
“There are four focus areas for Vanua Finance. One is land subdivision, the other is tourism, the third is gravel extraction and the fourth is commercial property development.
“From July to December, Vanua Finance has provided finance to 104 iTaukei-owned businesses and they’ve provided about $11m to them.”
MFL had only launched its land subdivision loans product in February this year, which he said is open to both iTaukei and non-iTaukei, although so far, mostly iTaukei landowners, through Vanua Finance, had applied for the land subdivision financing.
“We have 35 projects for land subdivision only,” Mr Rereiwasaliwa said.
“So far, we’ve seen three i-taukei land subdivision projects finished – one is in in Wainibuku in Suva, one in Votualevu and one in Vuda in Nadi that have been completed.
“Three more have started and are about to finish, and we have more than a dozen that will finish in the next couple of years.
“So right now the project that we’ve financed will deliver 299 lots, that’s where we’ve given money to already.
“The projects that are in the pipeline will deliver up to 2000 lots over the next three years,” Mr Rereiwasaliwa said.
While MFL’s land subdivision loan product is available to other ethnic groups who wish to develop their land, iTaukei landowners alone are eligible for government subsidy on their loans.
“In this year’s budget, the Government passed a budget for a $3m interest subsidy, to be shared between Merchant Finance and Fiji Development Bank,” Mr Rereiwasaliwa said.
“For Fiji Development Bank, it was for provincial companies.
“For iTaukei individuals, they were to get an interest subsidy through us – Merchant Finance.
“It’s a three-year subsidy and the subsidy is mainly for the work that is being done by our Vanua Finance team.
“So far we have used $300,000 and that has been given to seven iTaukei-owned businesses.
“We’ve asked for another $300,000 for about 12 more. We make a submission every quarter but that’s only for businesses financed under our Vanua Finance and in only those four focus areas.”
Mr Rereiwasaliwa said MFL is currently assessing an additional 10 land subdivision loan applications, majority of them in the Western Division as landowners with expired sugar cane leases have begun to move into land subdivision projects.
Credit: The Fiji Times
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