Time to take Pacific investment to the next level

Michael Nacola, Managing Director of BSP Life, is urging Pacific institutions to collaborate and combine their capital to unlock significant investment opportunities within the region. Speaking at the Pacific Islands Investment Forum, Nacola highlighted the Sofitel Fiji Resort and Spa as a prime example of what can be achieved through strategic partnerships among major Fijian companies.

The Sofitel Fiji Resort and Spa was initially established in 2005 through a joint venture between Air Pacific (now Fiji Airways) and Colonial (now BSP Life). This investment played a crucial role in driving further development on Denarau Island. Nacola noted that BSP Life and Fiji Airways later demonstrated considerable confidence by investing approximately $45 million in a major refurbishment of the resort. This significant investment occurred during the uncertain period of the COVID-19 pandemic.

"We took a risky decision to continue that work," Nacola stated, explaining that they proceeded despite other corporations holding back due to concerns about the pandemic's long-term impact and potential financial waste. He added that this decision allowed the resort to reopen with an enhanced offering, thereby supporting Fiji's tourism recovery.

“

And we took a risky decision to continue that work. We did, despite some other corporates kind of holding back, because of the concerns that it would be a long-tail pandemic and a lot of uncertainty might lead to money being put to waste.

Nacola emphasized that this experience proves Pacific institutions possess the necessary skills and capital to execute large-scale projects independently. He stressed the importance of sharing not only financial and intellectual capital but also risks and returns among like-minded partners. "Through collaboration, you know, what we’ve experienced over the last 20 odd years, the sharing of risk and sharing of reward goes on the back of like-minded people partnering," he said. "And so we believe that the time is right, you know, for us to kind of go next level."

He concluded by suggesting that the Sofitel development, a product of Fijian vision and execution supported by offshore expertise, could serve as a blueprint for fostering more investment opportunities across the Pacific. Nacola believes the current environment is ideal for Pacific institutions to unite, mobilize their resources, and advance regional investment to new heights.

“

Through collaboration, you know, what we’ve experienced over the last 20 odd years, the sharing of risk and sharing of reward goes on the back of like-minded people partnering. And so we believe that the time is right, you know, for us to kind of go next level