Fijian Holdings Limited today announced that the first offering of Fijian Holdings Property Trust Fund (FHPT) units closed on the 15th of September 2006. The sale of units in the FHPT, which was the first property trust to be launched in Fiji's financial market, was to partly fund the FHPT's acquisition of the Ra Marama building, the first property acquisition into the Fund. A total number of 11,340,800 units were available for sale at an issue price of $1.00 per unit. "At the closure of the offer, 72% of the total units were bought by institutional and retail investors. This is a very encouraging sign given the recent changes in Fiji's financial market," said Mr. Jaoji Koroi, General Manager Investments. "The high interest rates recently offered by commercial banks clouded the competitiveness of our product as most investors preferred to play in the short-term money market.

However, we believe that our projected total return over the medium to long term is still very competitive and is tax-free," said Mr. Koroi. "The result clearly shows that the tight monetary policy adopted by the Reserve Bank is deriving its desired effect on investment decisions," he added. Fijian Holdings Limited has complete confidence in the future success of this product. Mr. Koroi added that "the FHPT product offering is a solid one, underpinned by long-term rentals from the underlying property. This is an innovative product for our markets, and it takes time for retail and institutional investors to realize the benefits to them of a diversified and indirect property investment".

Under the underwriting agreement, FHL will acquire all the FHPT units that have not been sold by the closing date mentioned above. This acquisition will be made under the terms and condition outlined in the Agreement.

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