WELLINGTON: A 15-floor building that now serves as student accommodation in Wellington has reportedly been sold to an investment firm for $33.3 million. The former ‘Night and Day’ building, at 175 The Terrace, was sold to Wellington-based private investment company Caniwi Capital.
The acquisition take Caniwi’s asset base to $250m in commercial real estate around New Zealand, with $125m in Wellington. Until last year ANZ had full occupancy of 175 The Terrace when it was bought by Cheops Holdings, owned by Maurice and Kate Clark.
The former office building was then converted into student accommodation by Clark’s construction firm, McKee Fehl, its third such conversion. It was Caniwi’s second purchase from Cheops Holdings, after acquiring nearby Boulcott Hall for $14.3m in 2013.
The 390-room halls of residence, now called Katharine Jermyn Hall, comes with a 15-year lease from Victoria University, which Caniwi’s owner Troy Bowker said fitted his firm’s preference for long-term assets. “This purchase fits into our investment model nicely. We concentrate on acquiring properties leased on a long term basis to high quality tenants with built in rental growth.”
