Pak 'n Save Kilbirnie owners buy 'ANZ Campus' in Wellington
A firm owned by two Wellington grocers has bought a large inner-city office building for $56 million.
Kilbirnie Pak n' Save owners Brian Galt and his son Dean bought a 14,414 square metre property on Tory St through their investment company Nag Investments.
The site is home to four interconnected office buildings, one of which is leased to ANZ.
The buildings are built in a U-shape around a road. The site also includes around 100 parking spaces.
Private investment company Caniwi Capital sold the site after being approached by the supermarket owners.
Caniwi Capital principal Troy Bowker said, at the time, the company was not actively seeking a buyer for the property known as ANZ Campus.
"We intended to hold for the long-term but felt with our portfolio growing and with other properties we are acquiring around New Zealand it was a good offer and we accepted it."
In addition, the lease only had nine years to go, he said.
"[That] to most investors is a long lease, but my portfolio has a weighted average lease term of 18 years so selling the ANZ campus actually increased that. "
Caniwi Properties bought the property from well-known Wellington developer Ian Cassels in 2012 for $43m.
In September 2015, the property had a rateable value of $32.6m.
Caniwi Capital has a portfolio of properties worth about $350m, including two student accommodation halls in Wellington City, as well as a number of buildings in Petone.
His latest acquisition was a logistics centre in the Waikato, which is leased to Hall's Transport.
According to the NBR rich list, the Galts are worth $65m, including an already large commercial property portfolio as well as their supermarket.
The Galts are believed to own Maritime Tower on Customhouse Quay, the former CallActive House in Willeston St, AC Nielsen Building in Victoria St as well as other commercial offices.
Originally from Invercargill, the Galts have not responded to requests for comment.